'Removing Layers of Management': Microsoft Is Laying Off Another 9,000 Employees. Here's What We Know. The layoffs are expected to affect multiple teams, divisions, and locations, including Xbox and games.
By Erin Davis
Key Takeaways
- Microsoft is cutting around 9,000 employees, nearly 4% of its global workforce.
- The software company also announced layoffs in May, which affected around 6,000 people.
Microsoft announced a new round of mass layoffs Wednesday, this time affecting around 9,000 employees, according to The Seattle Times. The cuts will impact around 4% of its global workforce.
"We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace," a Microsoft spokesperson said in an email, per CNBC.
Related: Microsoft CEO Satya Nadella Says the Company Needs a 'Culture Change' After Security Failures
It's the latest in a string of mass layoffs for the tech giant. In May, Microsoft laid off 6,000 employees. The next month, the company cut hundreds more, mostly at its headquarters in Redmond, Washington.
According to a memo obtained by The Verge, Microsoft is cutting layers of management with a focus on middle managers. The note, which was written by Phil Spencer, Microsoft's CEO of gaming, confirms the cuts, at least within their division.
"To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness," the memo read.
"We must make choices now for continued success in future years, and a key part of that strategy is the discipline to prioritize the strongest opportunities," Spencer's note continued. "We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business."
Microsoft is the second-largest company in the world by market capitalization ($3.649 trillion), behind Nvidia, ahead of Apple. The company had more than 200,000 employees in June 2024, before the mass layoffs in 2025.
Payroll processing company ADP said on Wednesday that the U.S. private sector lost 33,000 jobs in June, per CNBC.
