Despite strong quarterly earnings, Microsoft trims 3% of its global workforce to streamline operations and realign focus on AI and cloud technologies.
May 14, 2025: Microsoft has announced a significant round of layoffs, with approximately 6,000 employees set to lose their jobs globally as part of a broader cost-cutting and restructuring strategy. The layoffs, which account for about 3% of the tech giant’s global workforce, were confirmed in a statement released on Tuesday.
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According to filings in Washington state, 1,985 positions are being cut at Microsoft’s headquarters alone. The company refrained from specifying the full scope of the reductions but stated the move was part of “organizational changes necessary to best position the company for success in a dynamic marketplace.”
In its official communication, Microsoft highlighted its continued push to eliminate “unnecessary layers of management” and to leverage artificial intelligence in a way that allows employees to “focus more on meaningful work.”
This announcement comes just weeks after Microsoft reported strong quarterly earnings, driven largely by its expanding cloud computing and AI divisions. The company has been one of the most aggressive early adopters of generative AI, rapidly integrating it across its product suite after the revolutionary debut of ChatGPT in 2022.
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As Microsoft marks its 50th anniversary this year, the workforce reduction signals a decisive shift in its operational focus, with an eye on future scalability and efficiency powered by AI.
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Microsoft layoffs, Microsoft AI, Microsoft restructuring, tech layoffs 2025, global tech job cuts, Microsoft workforce reduction, artificial intelligence, cloud computing, Microsoft 50 years