Microsoft Plans to Lay Off Thousands of Workers in Latest Round of Cuts

Microsoft (MSFT) plans to make more cuts to its global workforce, affecting thousands of workers. 

The tech titan plans to slash its headcount by nearly 4%, Microsoft confirmed to Investopedia Wednesday. The cuts could impact an estimated 9,000 workers, and primarily affect sales teams, according to reporting from Bloomberg.

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

The latest cuts come just weeks after a reported 3% workforce reduction affecting roughly 6,000 employees. CFO Amy Hood told analysts during the company’s earnings call in April that Microsoft was “building high-performing teams and increasing our agility by reducing layers with fewer managers.” The company employed some 228,000 employees worldwide as of the end of fiscal 2024, with around 120,000 in the U.S., according to a regulatory filing.

Microsoft, along with many other big tech companies, faces pressure to lower its headcount as it ramps up investments in AI. D.A. Davidson analyst Gil Luria told Investopedia last month that for every year Microsoft continues to invest at current levels, the company could be pushed to eliminate roughly 10,000 positions or allow them to go unfilled. 

Several of Microsoft’s big tech peers, including Google parent Alphabet (GOOGL) and Amazon (AMZN), have also made recent cuts. In June, Google extended buyout offers to U.S. employees across the company, expanding the scope of buyout offers earlier in the year.

Shares of Microsoft were little changed in recent trading. They have gained about 17% in 2025 so far.