Microsoft announces 9K job cuts
Microsoft revealed on Wednesday that it will lay off about 9,000 employees, representing less than 4% of its global workforce.
The cuts come as part of ongoing organizational restructuring aimed at positioning the company for success in a rapidly evolving market.
This announcement coincides with the start of Microsoft’s 2026 fiscal year, a period when the company typically announces major reorganizations.
The layoffs follow several rounds earlier this year, including a reduction of less than 1% in January, over 6,000 jobs in May, and at least 300 more in June. As of June 2024, Microsoft employed approximately 228,000 people.
The company aims to streamline its management layers to increase agility, particularly within its gaming division, where CEO Phil Spencer highlighted efforts to focus on strategic growth areas.
Despite these cuts, Microsoft remains highly profitable, reporting nearly $26 billion in net income on $70 billion in revenue for the March quarter, surpassing Wall Street expectations.
Microsoft’s stock closed at a record high of $497.45 on June 26, though it dipped slightly on Wednesday amid broader market fluctuations.