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.
Microsoft to lay off 3% of its workforce
TechCrunch
Microsoft to lay off about 3% of its workforce
Associated Press
Overview
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
- Microsoft is laying off nearly 3% of its workforce, amounting to about 6,000 jobs, across all levels and geographies.
- The layoffs come despite Microsoft reporting strong earnings, with over $70 billion in quarterly revenue and a net income of $25.8 billion, indicating a strategic reshuffle rather than a response to underperformance.
- The company emphasizes reducing management layers to increase agility and effectiveness, aligning with broader industry trends seen in other tech companies like Amazon.
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Associated Press·2M·FAQ
The layoffs are part of Microsoft's efforts to streamline processes, reduce management layers, and enhance efficiency and competitiveness in a dynamic marketplace.
Approximately 6,000 employees are affected, which is about 3% of Microsoft's global workforce of roughly 228,000.
Despite laying off employees, Microsoft remains financially strong, having reported strong earnings and an upbeat forecast for the future.
This round of layoffs affects nearly 6,000 employees, which is the largest since early 2023 when Microsoft cut 10,000 roles.
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