Microsoft Corp (NASDAQ:MSFT) has announced it is laying off about 3% of its global workforce, impacting about 6,000 employees across all levels, teams, and locations. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement to CNBC.
Microsoft began laying off nearly 3% of its entire workforce Tuesday, its largest mass layoff in more than two years.
Microsoft is reportedly laying off 3% of its workforce, or about 6,000 employees, to reduce the number of management layers. The job cuts are not performance-related, CNBC reported Tuesday (May 13), citing a Microsoft spokesperson.
The cuts amount to less than 3% of the tech company's workforce.
Microsoft is cutting roughly 3% of its global workforce as the company shifts more resources toward the race to develop advanced artificial intelligence, the company confirmed on Tuesday.
The layoffs will be focused on reducing management layers to enable faster decision making.
Microsoft is about to trim its worldwide workforce by 3%, CNBC reports. The company had around 228,000 employees worldwide as of June, it says, meaning more than 6,500 could be affected by the cuts.
Microsoft (MSFT) is looking to cut about 3% of its global workforce, according to a report from CNBC on Tuesday.
Microsoft's Q3-25 earnings showcased a 35% constant-currency growth in Azure, driven by AI workloads, surpassing Amazon's AWS growth rate. Despite higher valuation multiples, MSFT's price premium is justified by its superior top and bottom-line growth compared to GOOG and AMZN. Microsoft's increased capex investments have significantly boosted revenue growth, positioning Azure to potentially overtake AWS in market share by decade's end.
Microsoft began issuing layoff notices to thousands of employees Tuesday morning, two weeks after hinting at plans to streamline its workforce by cutting layers of management and focusing on more agile, high-performing teams.
Microsoft, which is cutting 3% of its headcount, had 228,000 employees as of last June. The maker of Windows and Word is aiming to reduce management layers.
This software giant is set to leverage AI tools of its own as well as those of third parties to a product that has rave reviews.