Microsoft laying off about 9,000 employees in latest round of cuts

Microsoft laying off about 6,000 people, or 3% of its workforce

preCharge News BUSINESS — Microsoft announced on Wednesday that it will lay off approximately 9,000 employees, affecting less than 4% of its global workforce. The job cuts span multiple departments, geographies, and experience levels, according to a source familiar with the matter who spoke with preCharge News.

The announcement coincides with the start of Microsoft’s 2026 fiscal year, a time when the tech giant traditionally implements internal restructures.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said via email.

Microsoft’s Recent Layoff History and Workforce Trends

Thousands Cut in 2024 Across Multiple Rounds

This latest reduction follows multiple layoff rounds earlier in 2024:

January: Less than 1% of staff let go, mostly based on performance.
May: Over 6,000 positions eliminated.
June: At least 300 more jobs cut.

As of June 2024, Microsoft had 228,000 employees. The company cut 10,000 jobs in 2023, and its most significant layoff event came in 2014, when 18,000 jobs were slashed following the Nokia acquisition.

Flattening the Org Chart: Cutting Management Layers

Gaming Division to See Strategic Shifts

In line with May’s restructuring strategy, the company is reducing layers of middle management to streamline decision-making and improve agility.

“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business,” said Phil Spencer, Microsoft CEO of Gaming, in a memo to employees.

This organizational flattening mirrors broader efforts across Microsoft’s verticals to tighten operations, especially in high-stakes growth areas like cloud, AI, and gaming.

Financial Context: Strong Profits Despite Job Cuts

Microsoft Maintains Record Revenue and Stock Performance

Despite the layoffs, Microsoft remains among the most profitable companies in the S&P 500:

March quarter: Nearly $26 billion in net income on $70 billion in revenue.
Forecast: 14% year-over-year revenue growth for the June quarter, driven by:
- Expansion in Azure cloud services
- Increased adoption of corporate productivity software

Microsoft shares hit a record high of $497.45 on June 26. On Wednesday, the stock dipped just 0.2%, while the S&P 500 gained 0.5%.

Layoffs Across the Software Industry and Broader Job Market

Microsoft Not Alone in Tech Downsizing

Other major software firms also slimmed down in 2025, including:

Autodesk
Chegg
CrowdStrike

Additionally, ADP reported on Wednesday that the U.S. private sector lost 33,000 jobs in June, defying economist expectations of a 100,000-job increase, according to Dow Jones.