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REDMOND, WA – – Microsoft has announced another wave of layoffs, marking its second major job cut in recent months. The company began notifying affected employees on Wednesday but did not disclose the exact number of positions being eliminated.
A spokesperson stated that the layoffs will affect less than 4% of Microsoft’s global workforce, which stood at 228,000 employees as of June 2024. Based on that figure, the latest cuts could impact up to 9,000 workers.
The layoffs span multiple teams worldwide, including sales operations and the Xbox video game division. Microsoft described the move as part of an ongoing effort to adapt to a changing business environment.
“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” the company said in a statement.
Ongoing Restructuring Amid AI Investments
This is Microsoft’s fourth round of layoffs in 2025. In May, the company laid off approximately 6,000 employees, citing a need to refocus resources amid increased investment in artificial intelligence. That same month, nearly 2,000 positions were cut in Washington state’s Puget Sound region. An additional 300 roles were eliminated at Microsoft’s Redmond headquarters in June.
Broader Industry Context
The cuts come as Microsoft, like many major tech firms, navigates shifting market dynamics, rising AI development costs, and ongoing global economic uncertainty. The company has also faced scrutiny over recent AI and cloud service contracts with military clients, prompting protests from some employees.
Despite the reductions, Microsoft remains one of the world’s most valuable companies, buoyed by its aggressive AI strategy and ongoing growth in enterprise services.