Microsoft Announces Major Layoffs: 9,000 Jobs Cut Globally

In a significant corporate shift, Microsoft has confirmed the elimination of 9,000 jobs worldwide, representing approximately 4% of its global workforce. Notably, 830 of these layoffs will impact employees in its home state of Washington, as reported by CNBC.

This latest wave of layoffs is part of Microsoft’s strategy to streamline operations, reduce redundancy, and empower its team members to concentrate on impactful work. The tech giant is also intensifying its investments in artificial intelligence (AI) and cloud computing, aiming to adapt to the evolving demands of the market.

Comprehensive Job Cuts Across Departments

As outlined in a document submitted to Washington employment officials, the layoffs affect a variety of departments and positions, including gaming, research, sales, hardware, engineering, legal, and cloud solution architecture. This broad approach reflects the company’s goal to enhance operational efficiency.

The job cuts include nearly a dozen game design roles, along with three audio designers, two mechanical engineers, an optical engineer, and a lab technician. Additionally, the reductions extend to five individual contributors, one manager from the esteemed Microsoft Research division, ten lawyers, and six hardware engineers.

In Washington, the layoffs specifically impacted 16 customer success managers, 28 sales strategy professionals, five sales compensation staff, and one government affairs employee. Interestingly, despite the robust growth of its Azure and cloud services—its fastest-growing revenue segments—17 positions in cloud solution architecture were also eliminated.

Although CEO Satya Nadella has not publicly addressed the layoffs, an internal memo from Xbox CEO Phil Spencer to gaming division employees emphasized that these changes are aimed at positioning the video game sector for “enduring success” and focusing on strategic growth opportunities.

Xbox to Implement Similar Restructuring

Spencer noted that Xbox will align with Microsoft’s strategy by reducing management layers, enhancing agility and effectiveness. He acknowledged that these changes are occurring at a time of unprecedented engagement with players, games, and gaming hours.

Affected employees are encouraged to explore other opportunities within the gaming division, with a commitment that their applications will receive priority consideration.

In his memo, Spencer highlighted the company’s commitment to “protect thriving areas and concentrate efforts on high-potential segments,” while also meeting business expectations.

A Microsoft spokesperson reiterated that the company is undertaking “organizational and workforce changes necessary to position the firm for success in a dynamic marketplace.”

This announcement marks Microsoft’s third significant round of layoffs in 2025. Following over 6,000 job cuts in May and another 300 in June, the company has now reduced its workforce by more than 15,000 roles this year alone. In Washington state, Microsoft has cut over 3,100 jobs since the spring.