Key Points
- Microsoft will lay off 9,100 employees worldwide, representing about 4% of its global workforce.
- This is Microsoft’s largest round of layoffs since 2023, following earlier cuts in May and June 2025 that affected 6,000 employees.
- The company cites market recession, cost-cutting, and the need to maintain profitability as primary reasons for the layoffs.
- No detailed breakdown yet on which countries or divisions will be most affected, but previous layoffs hit the Washington office significantly.
- Chief Commercial Officer Judson Althoff is taking a two-month sabbatical, returning in September, with the company stating it is unrelated to the layoffs.
- Microsoft joins other tech giants like Amazon in conducting large-scale workforce reductions amid ongoing industry challenges.
New Delhi: Tech giant Microsoft has announced its largest workforce reduction since 2023, confirming on Wednesday that it will lay off 9,100 employees globally. The move, which represents about 4% of Microsoft’s total workforce of approximately 228,000, signals ongoing turbulence in the technology sector and a strategic push by the company to streamline operations amid a challenging economic landscape.
Layoffs Follow Earlier Job Cuts in 2025
This latest round of layoffs comes on the heels of two earlier phases in May and June 2025, when Microsoft terminated around 6,000 employees. Of those, about 2,300 were reported to be from the company’s Washington office, though Microsoft has not specified how many of the new layoffs will impact its US headquarters or other regions.
The cumulative effect of these layoffs has created unease among Microsoft’s global workforce and sent ripples through the broader tech industry, which has seen a wave of job cuts from other major players like Amazon and Google in recent years.
Why Is Microsoft Laying Off Employees?
Microsoft stated that the decision to reduce its workforce is part of a broader effort to make the company more efficient and resilient in the face of ongoing market challenges. The company cited several key factors:
- Economic Uncertainty: Persistent recessionary pressures and a slowdown in global tech spending have forced companies to reassess their staffing needs.
- Cost-Cutting Measures: Microsoft aims to reduce operating costs and maintain strong profit margins as competition intensifies and revenue growth slows.
- Strategic Realignment: The layoffs are intended to help Microsoft focus resources on its most critical growth areas, such as artificial intelligence, cloud computing, and enterprise software.
A Microsoft spokesperson emphasized, “We are taking these difficult steps to ensure the long-term health and competitiveness of the company in a rapidly changing market.”
Leadership Changes: CCO Takes Sabbatical
Adding to the news, Microsoft’s Chief Commercial Officer, Judson Althoff, has announced a two-month sabbatical, effective immediately. The company clarified that Althoff’s break is a personal decision coinciding with the end of Microsoft’s financial year and is not directly related to the layoffs. He is expected to return to his role in September.
Industry-Wide Impact
Microsoft’s announcement follows similar moves by other tech giants, including Amazon, which has also executed large-scale layoffs in 2025. The trend highlights ongoing volatility in the tech sector, with companies balancing innovation and growth against the need to control costs and adapt to shifting market dynamics.
What’s Next for Microsoft Employees?
The company has not yet provided a detailed breakdown of which departments or regions will be most affected by the layoffs. However, employees across various divisions are bracing for impact, and industry analysts expect further restructuring as Microsoft and its peers continue to navigate a complex economic environment.
Microsoft’s decision to cut over 9,000 jobs underscores the persistent challenges facing the global technology industry. As the company seeks to maintain its competitive edge and financial health, affected employees and the broader sector will be watching closely for further developments and signs of stabilization in the months ahead.
