Microsoft to cut under 2.5% of workforce in latest layoffs
Microsoft is planning to lay off less than 2.5% of its workforce, affecting around 4,000 jobs, according to Business Insider. The cuts target underperforming employees and are part of a broader restructuring effort. The company has not yet officially confirmed the exact number of layoffs.
Background
- Microsoft is cutting roughly 2,000–3,000 jobs (under 2.5% of its ~125,000 employees), citing a need to refocus on AI, cloud, and cybersecurity.
- This is the latest in a wave of layoffs across Big Tech (Google, Amazon, Meta) that began in 2023, as companies wind down pandemic-era overhiring and shift resources toward AI.
- Under CEO Satya Nadella, Microsoft has aggressively invested in OpenAI and integrated AI into products like Copilot, Bing, and Azure.
- The cuts are small relative to the 10,000-person layoff Microsoft announced in early 2023, but they signal continued belt-tightening even as the company posts record profits.
- Affected employees are concentrated in sales, customer support, and some product roles; engineering (especially AI teams) is largely spared.