Second biggest layoff by Microsoft cutting 6,000 jobs globally

Microsoft plans to lay off approximately 3 per cent of its workforce on Tuesday, which might amount to 6000 people. The company had its last major workforce reduction in 2023 when it laid off 11,000 employees.

The cuts will be across all levels and geographies, including LinkedIn and Xbox, but managerial-level employees would be in focus, said the company spokesperson in a statement.

"To enhance our efficiency, we will minimise redundancy by streamlining our processes, procedures and roles," said a Microsoft spokesperson in a statement.

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Geographical Impact

In Washington State alone, 1,985 workers will be laid off, including both office and remote employees. The Washington-based tech giant intends to streamline operations to increase efficiency. This move comes at a time when the company has encountered a headcount growth of 2 per cent since March 2024. According to company data, Microsoft had approximately 2,28,000 employees globally. About 55% of those are in the United States

Microsoft had recorded $70.1 billion in profit and sales in the Q1 of FY25, which is a 13 per cent y-o-y growth, as per the company data.

The company wants to reallocate its resources towards developing advanced artificial intelligence, with significant capital investment in AI infrastructure. The layoffs are part of a strategic initiative to position the company for success in a dynamic marketplace.

With inputs from agencies