Microsoft announces thousands of employees to be laid off

Global tech giant Microsoft has announced the termination of approximately 9,000 employees worldwide, marking the company’s largest round of layoffs since 2023. The move represents around 4% of Microsoft’s total global workforce.

According to international media reports, a company spokesperson stated that the decision aims to make Microsoft more agile, efficient, and aligned with modern market dynamics in an ever-evolving global tech landscape.

The announcement, made on July 2, 2025, is part of Microsoft’s third phase of workforce reductions in recent months, as reported by U.S. broadcaster CNN.

In an official statement, the company said it is implementing organisational changes to ensure that teams remain competitive and capable in the rapidly advancing technology sector. The emphasis is on streamlining structures and enhancing performance across departments.

Phil Spencer, CEO of Microsoft’s gaming division, emphasised the need to scale back operations in certain areas and reduce managerial layers to increase responsiveness and productivity.

One of the primary drivers behind the layoffs is the company’s accelerated integration of Artificial Intelligence (AI) technologies. Microsoft CEO Satya Nadella previously revealed that nearly 20 to 30 per cent of the company’s software code is now being generated through AI tools.