Microsoft, MSFT, is laying off 3% of all its employees

Microsoft (NASDAQ: MSFT) is cutting roughly 3% of its global workforce—its most significant round of layoffs in over two years.

Though not officially announced through a press release or SEC filing, the news broke Tuesday and was later confirmed by a Microsoft spokesperson to CNBC. The reduction amounts to nearly 7,000 jobs out of the company’s 228,000 employees worldwide.

This marks Microsoft’s largest layoff event since early 2023, when it cut 10,000 roles. The company described the move as part of a broader effort to align its structure with the demands of a rapidly evolving market. Unlike performance-related layoffs earlier this year, this wave is tied to organizational restructuring, not individual evaluations. According to the company, it’s aimed at trimming layers of management and adjusting operations as platform needs evolve.

The decision comes despite strong financial performance. Just weeks ago, Microsoft posted $70.1 billion in revenue, up 13% year-over-year. Cloud services, including Azure, saw 33% growth—nearly half of which came from AI-driven demand. Wedbush analysts described the earnings as a standout moment for AI monetization.

Microsoft shares have climbed about 6% in 2025 so far, and have more than tripled from their 2020 pandemic lows.

The company’s move is part of a broader recalibration across Big Tech. Since 2023, firms like Amazon, Meta, and Google have slashed tens of thousands of jobs after ramping up hiring during the pandemic. Amazon has cut over 27,000 roles, Meta laid off more than 21,000 as part of its “year of efficiency,” and Alphabet, Google’s parent company, let go of 12,000. Microsoft’s current cut adds to that trend of ongoing workforce consolidation.

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