Microsoft continues to adjust its workforce as part of broader strategic changes, reflecting the evolving demands of the tech industry and efforts to maintain competitiveness in a dynamic market.

Job Cuts to Affect Over 6,500 Employees

Microsoft is preparing to reduce its global workforce by 3%, according to a report by CNBC.With around 228,000 employees as of June, this translates to more than 6,500 people potentially losing their jobs.

One of the Largest Layoffs Since 2023

This move marks one of Microsoft’s most significant layoffs since the company cut 10,000 positions in 2023.

Official Statement on the Restructuring

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

Strong Financial Performance Despite Layoffs

In April, Microsoft posted strong quarterly earnings with $70.1 billion in revenue (a 13% increase) and $25.8 billion in net income (an 18% rise), surpassing analyst expectations. Despite this financial strength, the new wave of layoffs will span across all levels, teams, and locations.

Layoffs Not Performance-Based

The spokesperson clarified to CNBC that these layoffs are not performance-related. In contrast, a round of layoffs earlier in January was based on employee performance.

Broader Trend Across Big Tech

These job cuts are part of a larger trend in the tech industry. Over the past year, thousands of workers have been laid off across major tech firms, including Amazon and Meta, which also announced layoffs in January.