Microsoft on Tuesday began laying off nearly 3 percent of its total workforce — or about 6,000 employees.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” a Microsoft spokesperson told The Hill in an emailed statement.
The Washington state-based tech company has a total of 228,000 workers globally, according to the corporation’s latest figures, with some 126,000 in the United States. Tuesday’s cuts will impact thousands.
The layoff notices have already gone out to some employees.
Microsoft also had layoffs earlier this year, initiating performance-based job cuts across multiple departments. The prominent tech company also let roughly 1,900 employees go at Activision Blizzard and Xbox in early 2024.
The latest layoffs mark the largest cuts at the tech company since Microsoft slashed about 10,000 positions, nearly 5 percent of its workforce, in January 2023.
Microsoft CFO Amy Hood said during an earnings call in late April that “operating margins increased 1 point year over year to 46 percent, better than expected as we continue to focus on building high-performing teams and increasing our agility by reducing layers with fewer managers.”
The company, co-founded by billionaire Bill Gates, reported bringing in just more than $70 billion in revenue for the third quarter of fiscal 2025. The company’s net income was $25.8 billion, increasing by 18 percent.
“Cloud and [artificial intelligence] are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” Microsoft CEO Satya Nadella said April 30.
“From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers,” he added.
