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.
Three promising generative AI behemoths in focus are: GOOGL, META, MSFT.
For investors watching the tech sector with a cautious eye, Monday's market mood has delivered a shot of optimism. US stock futures are pointing sharply higher after Washington and Beijing struck a surprise deal to suspend most of their punitive tariffs, a move Wedbush described as a best-case scenario following intense talks in Switzerland over the weekend.
OpenAI is in advanced talks with Microsoft Corp (NASDAQ:MSFT) to revise the terms of their multibillion-dollar partnership as it prepares for a possible stock market listing, the Financial Times reports. The discussions centre on how much equity Microsoft will hold in OpenAI's restructured business, following more than $13 billion in investment.