The move is part of Microsoft’s broader efforts to streamline operations, reduce management layers, and enhance agility in a rapidly shifting technology and business landscape. The company has increasingly pivoted toward AI integration and productivity-focused tools,

Microsoft layoffs 2025 have shocked the tech world, as the company cuts 6,000 jobs—around 3% of its global workforce. Even Gabriela de Queiroz, Microsoft’s Director of AI for Startups, wasn’t spared.

Microsoft began laying off about 6,000 workers Tuesday, nearly 3% of its entire workforce and its largest job cuts in more than two years as the company spends heavily on artificial intelligence.

Microsoft cuts 7,000 jobs to prioritize AI investments. Layoffs impact LinkedIn, Xbox, and global offices as company streamlines operations.

Microsoft will cut 6,000 people — about three per cent of its global workforce — AFP reported. That includes 1,985 workers in its home state of Washington, according to a filing posted on the state's labour affairs agency website.

In comparison, 2024 saw around 1,50,000 job cuts across 549 companies. In May 2025, big tech companies Amazon, Google, and Meta announced reductions in certain divisions while Microsoft announced its biggest round of job cuts since 2023, with over 6,000 employees being laid off across its businesses.

Around 7,000 Microsoft workers could be losing their jobs – the biggest reduction since January 2023 when 10,000 workers left.