Mc Announces Another Round of Mass Layoffs – 9,000 Jobs at Risk After Recent 6,300 Cuts

Microsoft Set to Lay Off 9,000 Employees in Fourth Round of 2025 Cuts

Tech giant Microsoft is reportedly planning another major round of layoffs, with approximately 9,000 employees expected to be let go — marking its fourth wave of job cuts in 2025 and the largest since the company laid off 10,000 workers in 2023.

According to a CNBC report citing a source familiar with the matter, the upcoming cuts will affect less than 4% of Microsoft’s global workforce, which stood at 228,000 employees as of June 2024. The layoffs will span multiple teams, geographies, and levels of experience, and come just as Microsoft begins its 2026 fiscal year, a common time for internal restructuring.

Timeline of Layoffs in 2025:

January: Smaller round of cuts

May: 6,000 jobs slashed (3% of workforce)

June: 300 more employees laid off

July: 9,000 additional jobs to be cut (reportedly)

This marks Microsoft’s most significant workforce reduction in 2025, pushing the total number of layoffs this year past 15,000.

Xbox Division Hit Hard

An internal email from Xbox CEO Phil Spencer, which has since been leaked, has stirred backlash from fans and industry observers. In the message sent to all Microsoft Gaming employees, Spencer cited the need to streamline operations and reduce management layers for greater efficiency, while also "focusing on strategic growth areas."

Nadella Cites AI, Cloud as Growth Drivers

While Microsoft trims its workforce, CEO Satya Nadella has continued to emphasize the company’s future lies in AI and cloud computing. Nadella noted in April that 20–30% of coding in some projects is already being handled by AI tools, signaling a shift toward automation.

He also said, “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth.”

Solid Financials Amid Restructuring

Despite the layoffs, Microsoft has reported strong financial results:

Q3 revenue: $70.1 billion (up 15% in constant currency)

Operating income: $32.0 billion (up 19%)

Net income: $25.8 billion (up 18%)

Microsoft 365 Commercial revenue: Up 11%

LinkedIn revenue: Up 7%

Dynamics 365 revenue: Up 16%

Xbox content and services: Up 8%

Industry Reaction

The layoff wave has ignited debates on social media about the direction of Microsoft’s workforce strategy and the broader trend of Big Tech leaning on AI efficiencies while reducing human labor. Critics argue that these job cuts contrast sharply with the company's soaring revenues.

As Microsoft continues its restructuring in 2025, more updates are expected in the coming weeks, especially as team-level reorganizations unfold internally.