Microsoft is set to lay off approximately 9,000 employees in a sweeping reorganization effort aimed at streamlining operations and aligning the company’s focus with its long-term priorities—particularly in artificial intelligence and cloud computing.
This marks the tech giant’s third significant round of layoffs in 2025. While earlier cuts mostly affected engineering and product teams, this wave will primarily impact workers in sales, marketing, and gaming divisions.
The layoffs are part of a broader strategy to reduce management layers and boost operational efficiency across the company. Leadership believes this restructuring will allow teams to respond more quickly to emerging technologies and improve Microsoft’s ability to innovate in AI infrastructure, data centers, and next-generation platforms.
Employees were notified through internal memos and meetings, with company officials emphasizing support services and severance packages to assist those affected. The decision comes at the close of Microsoft’s fiscal year, a common period for organizational changes.
Despite the job cuts, Microsoft says it remains committed to hiring in strategic growth areas and plans to continue investing heavily in AI development and cloud expansion.
This restructuring reflects a growing trend across the tech industry, where major companies are adjusting workforce structures to prioritize artificial intelligence and automation.
