Microsoft to Lay Off 6,000 Workers Across All Departments

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Microsoft announced on May 13 that it is cutting 3% of its workforce, which will affect 6,000 people across all levels, teams, and geographies. This, despite the fact that the company’s shares rose about 9% at the end of April, with better-than-expected results, with $25.8 billion in quarterly net income.

The layoffs are part of the tech giant’s plans to reduce costs while investing billions in artificial intelligence. The company had 228,000 employees at the end of June 2024.

In a statement to CNBC, a Microsoft spokesperson said, “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” 

The company also stated its Redmond headquarters in Washington state planned to lay off 1,985 people, including 1,510 in-office workers.

CNBC reported that this round of layoffs is the largest at Microsoft since 2023, when the company eliminated 10,000 positions. A small number of people were let go in January based on performance. However, that number amounted to less than 1% of the company’s employees, and according to Microsoft, it is not related to these latest job cuts.

On May 12, Microsoft shares ended trading at $449.26, their highest price this year.