Microsoft To Lay Off 9,000 Employees In Latest Restructuring Move
Microsoft has announced a significant reduction in its workforce, laying off approximately 9,000 employees. This is around 4% of its global staff. This follows a wave of cuts made earlier this year, bringing the total number of job losses to over 15,000 since the beginning of 2025.
The layoffs primarily affect divisions such as Xbox (Microsoft Gaming), sales, and marketing, with a focus on roles that directly interact with customers. As the company shifts its focus toward a more streamlined, efficient operation, it is reallocating resources to bolster its artificial intelligence (AI) initiatives and reduce management layers for improved decision-making.
Among the impacted roles, about 830 positions are based at Microsoft’s headquarters in Redmond, Washington. The company has emphasized that the move is part of a broader effort to drive greater operational agility while investing heavily in AI. Microsoft plans to enhance its data centers and expand its AI partnerships, including further collaboration with OpenAI.
Phil Spencer, head of Xbox, addressed the cuts by acknowledging their difficulty, but stressing their importance for the company’s long-term success. “Focusing on high-impact projects and reducing organizational complexity will help Microsoft remain competitive in an evolving market,” he said in an internal communication to staff.
Despite the layoffs, Microsoft reported strong earnings for the previous quarter, with profits rising 18% to $25.8 billion. These solid financial results underscore the company’s ability to weather the restructuring process as it pivots toward AI and other emerging technologies.
As Microsoft continues to refine its strategy, the layoffs signal a shift towards more efficient and AI-driven operations as it looks to stay ahead in the rapidly changing tech landscape.
