Microsoft is set to lay off about 9,100 employees roughly four per cent of its global workforce as part of a major internal restructuring, the company confirmed this week.
The job cuts come as the software giant marks its 50th anniversary and pushes deeper into artificial intelligence, an area it has prioritised with billions of dollars in new investment.
“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement on Wednesday.
The company currently employs around 228,000 people worldwide. The latest layoffs follow a separate round in May that saw about 6,000 positions eliminated. Combined, nearly 15,100 jobs have been slashed this year alone.
Middle Management Targeted
Sources close to the matter say the cuts will span multiple business units and regions, with sales, marketing, and the Xbox gaming division among the most affected. The move is expected to reduce layers of middle management to speed up decision-making and cut costs.
According to El País, Microsoft is also trimming roles at its King studio in Barcelona, known for games like Candy Crush, where about 200 positions roughly 10% of the team are being axed.
In a memo seen by Reuters, the company said the changes would “empower employees to spend more time focusing on meaningful work” by simplifying workflows and investing in better tools and automation.
Big AI, Bigger Budget
The restructuring coincides with Microsoft’s massive $80 billion investment in AI infrastructure for the 2025 fiscal year. This includes building new data centres to power its artificial intelligence systems, many of which are being integrated into tools like Microsoft Word, Teams, and Azure.
But that ambition comes at a cost. Analysts say the scale of spending has put pressure on profit margins, especially within Microsoft’s cloud services.
“This is less about survival and more about staying ahead,” said Carla Jiménez, a tech industry analyst at Digital Futures Group. “Microsoft knows it has to keep evolving, even if that means making tough calls.”
Despite the cuts, Microsoft remains profitable. It reported revenues of over $70 billion and a profit of nearly $26 billion in its last quarter, according to El País.
A Wider Trend
Microsoft is not alone. Other major tech firms Meta, Google, and Amazon have also trimmed staff in 2025, citing the need to realign strategies and reduce spending after years of rapid growth.
As the tech sector continues to shift its focus from expansion to efficiency, Microsoft’s move signals a new phase for one of the world’s most influential companies.
The firm says it will support affected employees during the transition and remains committed to long-term growth.
