Tech giant Microsoft has announced plans to lay off about 9,000 workers, affecting less than 4 percent of its total workforce across the world.
The company made the announcement on Wednesday, saying the job cuts will touch different departments, countries, and levels of experience.
A Microsoft spokesperson told CNBC, “We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace.”
This latest cut comes as part of several rounds of layoffs this year. In January, Microsoft dropped less than one percent of its workers. In May, over 6,000 were affected, followed by at least 300 more in June.
Microsoft had about 228,000 employees as of June 2024. The company had also laid off 10,000 workers in 2023.
This new decision was made at the start of the company’s 2026 fiscal year, a time when major restructuring is usually announced. Microsoft said the move is to reduce the number of layers between top executives and junior staff.
Phil Spencer, the CEO of Microsoft Gaming, also confirmed the decision will affect workers in the gaming division. In a memo to staff, he said, “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 and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.”
Microsoft reported $70 billion in revenue and nearly $26 billion in profit in the March quarter. The company remains one of the most profitable firms on the S&P 500 index, according to FactSet data.
