- Microsoft recommends to adopt its greatest redundancies of over two years
- 3% lose their jobs, or 6,000 to 7,000 workers
- Middle managers are in danger
Microsoft has announced significant redundancies that influence an estimated 6,000 to 7,000 workers globally, or 3% of its current employee number.
It is assumed that the job cuts will affect various departments and regions, including LinkedIn, Xbox and Software Engineering Teams, with almost 2,000 roles to be removed from Washington State alone (via CNBC).
As part of the significant shaker, Microsoft is primarily targeted at intermediate management roles within an initiative to flatten organizational structures – a trend that we also begin to see adopted by rival companies.
Microsoft Streamline Operations with 3% Reduction of Employees
“We continue to implement organizational changes needed to best place the company for success in a dynamic marketplace,” added a company’s spokesman.
Like the rest of the tech sector, redundancies continue to plague Microsoft, which has already made smaller scale messages this year. By 2024, it made a number of medium -sized messages, including 650, 1,000 and 1,900 workers in three separate cases (via layoffs.
Despite a strong financial performance, with a $ 70.1 billion turnover in the company’s recent quarter, the landscape is changing. Microsoft must prepare to prioritize investments in AI and Cloud Computing, which means other departments are likely to suffer.
CFO Amy Hood also noted that the number of staff was already 2% higher than the year earlier during the Q3 2025 earnings peel. Nadella, referring to the continued growth of AI, added to the April call: “We treated over 100 trillion tokens in this quarter, an increase of 5x year-over-year-inclusive a record 50 trillion tokens last month alone.”
Techradar Pro Have asked Microsoft to share more about his decision, but we did not receive an immediate answer.