Microsoft lays off 6,000+ employees for non-performance reasons

Microsoft is laying off up to 3 percent of its global workforce, reports Bloomberg. With Microsoft having around 228,000 employees at the end of June 2024 (the latest reported number), that’d mean around 6,000 to 6,800 people being let go, according to CNBC.

This confirms the rumors from last month. The layoffs are to take place in different regions across different employee levels and teams. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a company spokesperson told CNBC.

Microsoft plans to cut 1,985 jobs at its Redmond headquarters alone, 1,510 of which will be in the office. One aim is to reduce layers of management, the spokesperson said. Unlike the previous job reduction from January 2025 that hit “low performers,” these layoffs are not performance-related.

It’s currently unknown whether the Xbox games division will also be affected by the layoffs, but Microsoft has repeatedly cut jobs in the Xbox division in recent years.

These job cuts don’t fit with the latest business figures. At the end of April, Microsoft reported a net profit of $25.8 billion for the quarter, which exceeded expectations, and also issued a positive forecast.