
Microsoft Layoffs: Tech Giant Axes Nearly 9,000 Jobs in Global Workforce Shakeup
In a move that has sent shockwaves across the global tech landscape, Microsoft has announced another round of mass layoffs, cutting close to 9,000 employees worldwide. This marks the company’s second significant downsizing in just a few months, as it continues to restructure amid rising investments in artificial intelligence and a rapidly shifting marketplace.
The company began issuing layoff notices on Wednesday, July 2, affecting several divisions across geographies — most notably the sales department and the Xbox video game business.
“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” Microsoft said in an official statement.
Massive Workforce Reduction Underway
Microsoft did not disclose the exact number of people impacted in this latest round. However, company officials confirmed that the layoffs represent just under 4% of the total workforce it reported in June 2024 — which stood at 228,000 full-time employees globally. That percentage translates to nearly 9,000 jobs cut.
This is the third known round of job cuts by Microsoft in 2025 and comes on the heels of:
- 6,000 employees laid off in May (around 3% of its workforce)
- 300 roles eliminated in June at its Redmond headquarters
- Nearly 2,000 jobs cut in the Puget Sound region earlier this year
With each round, Microsoft has focused on reshaping teams and redirecting resources, particularly toward its AI ambitions, cloud infrastructure, and productivity services.
Xbox and Sales Divisions Take a Hit
Among the hardest hit in the latest layoffs are the teams associated with Microsoft’s Xbox business and its sales organization. The cuts reflect broader industry trends where gaming divisions are under pressure to consolidate operations, and tech sales departments are being restructured to align with AI-driven automation and changing enterprise demands.
The Xbox division has undergone multiple strategy shifts in recent years, including game studio acquisitions and streaming platform expansions. While Microsoft has not provided specific numbers regarding Xbox-related layoffs, internal reports suggest that several development and marketing teams were affected.
Strategic Shift Amid AI Push
The tech behemoth has been heavily investing in artificial intelligence, partnering with companies like OpenAI and integrating AI tools such as Copilot into its Office and Azure cloud services. However, this expansion has also led to resource reallocations, prompting job cuts in legacy operations and overlapping departments.
Microsoft CEO Satya Nadella previously stated that the company is entering a new phase where AI would be central to “every product” it offers — a move that requires both re-skilling and re-structuring of its global teams.
A Global Impact
The layoffs are not limited to Microsoft’s U.S. offices. Teams in Europe, Asia, and other global centers have reportedly received termination notices. While the company has assured that severance packages and transition support will be provided, the impact on employee morale and local tech ecosystems is expected to be significant.
Industry-Wide Downsizing Continues
Microsoft’s latest move is part of a broader wave of layoffs across the tech industry in 2025. Despite record profits and high growth in AI segments, companies like Google, Meta, Amazon, and Salesforce have all implemented cost-cutting measures this year, citing the need for efficiency, innovation, and leaner operations.
What Lies Ahead
Microsoft’s current trajectory suggests a continued focus on automation, AI integration, and cloud-driven revenue. As the company leans deeper into emerging technologies, more legacy roles may face consolidation.
While innovation remains the driving force behind these strategic changes, the human cost is palpable. With nearly 9,000 more employees out of work, Microsoft faces both public scrutiny and internal challenges to maintain productivity, morale, and cultural cohesion.