Microsoft plans job cuts, impacting less than 2.5% of workforce
Microsoft is planning job cuts that will impact less than 2.5% of its workforce, primarily affecting roles in sales and consulting, as part of ongoing restructuring efforts.
Background
- Microsoft is planning layoffs affecting less than 2.5% of its workforce (roughly 5,000–6,000 people), focused on its sales and consulting departments. The company employs about 228,000 people globally.
- This is part of a broader trend: Microsoft has conducted several rounds of cuts since early 2023 (including the elimination of ~10,000 jobs in 2023) as it reorients toward AI. The company is investing heavily in AI infrastructure and products (e.g., Copilot, Azure AI) and is cutting roles it considers less central to that strategy.
- These cuts primarily target customer-facing and solutions roles, not engineering or AI teams. The move reflects a pattern across big tech: trimming headcount in traditional business units while pouring resources into AI development.