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Microsoft Announces Layoffs Impacting 3% of Workforce Amid Strong Earnings

Microsoft is laying off about 3% of its global workforce, affecting approximately 6,000 employees, even after reporting strong financial results.


Overview

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Microsoft has announced layoffs affecting about 3% of its workforce, translating to around 6,000 employees globally. This decision, the largest since early 2023 when 10,000 workers were cut, comes despite the company reporting strong earnings of $70.1 billion in revenue for the quarter ending March 31, 2025. The layoffs will impact all levels and locations, focusing on reducing management levels. A Microsoft spokesperson emphasized the need for organizational changes to enhance efficiency and competitiveness in a dynamic marketplace. This move reflects ongoing workforce adjustments in the tech sector, which has seen widespread layoffs across major companies.

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Analysis

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Microsoft's layoffs are reflective of broader trends in the tech industry as many companies downsize after pandemic-related expansions.

Microsoft's decision to lay off workers appears to be driven by a desire to enhance organizational efficiency and not as a consequence of employee performance, focusing instead on reducing management levels.

Despite significant layoffs, Microsoft has consistently exceeded Wall Street's earnings expectations, indicating resilience in its financial health.

Articles (7)

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Microsoft to cut 3% of its workforce
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Microsoft to lay off 6,000 employees in cost-cutting move
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Microsoft to lay off about 3% of its workforce
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Microsoft to lay off 3% of its workforce
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Microsoft to Lay off about 3% of Its Workforce
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History

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