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Microsoft Is Laying Off 3% of Its Workforce Despite Strong Financials

A new wave of cuts at Microsoft sees 6,000 of the company’s workforce let go.

 & James Peckham Reporter

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More layoffs are happening at Microsoft. The company confirms it's in the process of cutting nearly 3% of its workforce, resulting in around 6,000 fewer jobs across the business.

The layoffs are confirmed across the business at various seniority levels and locations, but the main focus is to reduce management layers. These job cuts aren't performance-related, and those impacted were contacted on Tuesday.

A spokesperson for Microsoft told CNBC, "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”

This push for efficiency comes after Microsoft posted better results than many had expected, hitting revenue of over $70 billion. In the first three months of 2025, the company posted net income of $25.8 billion, which was 18% higher than the year before.

It’s unclear if these changes were influenced by the company’s continued push into artificial intelligence. Microsoft has said it will invest $80 billion this year in the AI side of its business.

The latest workforce data for Microsoft is from June 2024, where the company had 228,000 employees. Around 55% of those were based in the US.

This is Microsoft's largest announcement of layoffs since the company eliminated 10,000 roles in 2023. In January, it laid off what it called a “very small” number of jobs in its gaming division.

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James Peckham

James Peckham

Reporter

I’ve been a journalist for over a decade after getting my start in tech reporting back in 2013. I joined PCMag in 2025, where I cover the latest developments across the tech sphere, writing about the gadgets and services you use every day. Be sure to send me any tips you think PCMag would be interested in.

I’ve worked at TechRadar, Android Police, T3, and more, where I broke many tech stories you may have read, including the return of the Motorola Razr when it first became a foldable phone. Based near London, I’ve appeared on BBC News, Al Jazeera, and other TV networks, podcasts, and radio shows as an expert on the latest tech stories and trends.

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