Redmond: In a significant workforce shake-up, Microsoft has initiated its second round of mass layoffs within months, letting go of nearly 9,000 employees globally. The layoff notices began going out on Wednesday, July 2, 2025, and span multiple departments including sales and the Xbox video game division.
This reduction reportedly accounts for less than 4% of Microsoft’s total workforce as of last year. While the tech giant did not disclose the exact number of affected workers, sources confirm that the figure hovers around the 9,000 mark—marking a substantial contraction amidst broader strategic shifts.
The move is largely seen as a part of Microsoft’s cost realignment strategy, following heavy investments in Artificial Intelligence (AI) technologies and services. With billions poured into AI research, cloud infrastructure, and integrations with OpenAI’s models, the company is now refocusing resources toward future growth sectors, even if it means tightening operations elsewhere.
Key Highlights:
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Affected Departments: Sales, Xbox, and other global units.
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Reason Cited: Strategic restructuring and increased focus on AI capabilities.
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Layoff Size: Approximately 9,000 employees, less than 4% of the total workforce.
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Previous Layoff: Microsoft had also executed job cuts earlier this year, marking this as the second major layoff wave.
In a brief statement, Microsoft said, “Organizational and workforce adjustments are a necessary and regular part of managing our business. We remain committed to treating all impacted employees with dignity and respect.”
The news adds to the growing list of layoffs sweeping across the global tech sector in 2025, as companies pivot toward AI-driven efficiencies while grappling with economic uncertainty and shifting consumer behaviors.
Outlook:
Industry analysts suggest the company’s ongoing shift toward cloud, AI, and platform unification will likely continue to reshape its workforce structure. Despite the layoffs, Microsoft remains one of the most profitable technology companies globally, with a strong outlook in AI, enterprise software, and gaming infrastructure.
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