Microsoft has announced plans to lay off approximately 9,000 employees, affecting less than 4% of its global workforce.
The decision, according to CNBC, spans across various teams, geographies, and experience levels.
This move marks Microsoft’s latest round of layoffs in 2025, following workforce reductions in January, May, and June.
In May alone, over 6,000 jobs were cut, with another 300 reportedly affected the following month. As of mid-2024, Microsoft employed around 228,000 people globally.
The announcement comes at the start of the tech giant’s 2026 fiscal year, a period traditionally associated with internal restructuring. A company spokesperson explained that the changes are designed to “best position the company and teams for success in a dynamic marketplace.”
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Microsoft is also said to be streamlining its managerial layers to enhance agility and efficiency.
This initiative particularly affects its gaming division, where CEO Phil Spencer noted in an internal memo that strategic growth areas will take precedence over less critical functions.
Despite the layoffs, Microsoft remains financially strong, reporting nearly $26 billion in net income on $70 billion in revenue for the March 2025 quarter—figures that surpassed Wall Street expectations and solidified its place among the most profitable S&P 500 companies.
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