New Delhi: Microsoft has announced its largest round of job cuts since 2023, laying off up to 9,100 employees, which is about 4 percent of its global workforce Seattle Times reported on Wednesday. This move comes as part of a broader effort to streamline operations and adapt to ongoing economic challenges. The layoffs will impact employees across various teams, regions, and levels of seniority—not just in the gaming and sales divisions, but throughout the company.
The cuts were communicated to employees at the start of Microsoft’s new fiscal year, a time when the company traditionally reviews and restructures its operations. However, the scale and frequency of recent layoffs are notable: Microsoft already cut over 6,000 jobs in May 2025, followed by at least 300 more in June. Earlier this year, the company also reduced its workforce by nearly 2,000 employees in its gaming division and closed several game studios.
The Xbox division is among the hardest hit, with significant reductions at game studios like King and ZeniMax, as well as the cancellation of projects such as Rare’s Everwild. Microsoft’s sales and marketing teams are also facing substantial cuts, with sources indicating that customer-facing roles will bear the brunt this time.
These layoffs are part of a larger trend in the tech industry, with companies across the sector announcing job cuts in response to automation, artificial intelligence advancements, and economic uncertainty. In Microsoft’s case, the company is also investing heavily in AI and cloud infrastructure, which is reshaping its workforce needs.
A Microsoft spokesperson stated that these “organizational adjustments” are necessary to position the company for success in a rapidly changing market. The company had about 228,000 employees worldwide as of June 2024, and the latest cuts follow a series of reductions that began last year, including the elimination of 10,000 jobs in 2023.
Overall, Microsoft’s latest layoffs reflect both the company’s push for efficiency and the broader pressures facing the tech industry as it adapts to new technologies and shifting economic conditions.
