Brace yourselves—Microsoft is swinging the axe again. On Wednesday, July 2, 2025, the tech giant revealed plans to lay off roughly 9,000 employees, marking yet another round of deep cuts as it pivots hard toward artificial intelligence and efficiency.
According to the New York Post, this latest move impacts less than 4% of Microsoft’s global workforce, slashing jobs across various teams and experience levels as part of a broader strategy to streamline operations.
Let’s rewind to understand the pattern. Back in 2014, Microsoft shocked the market by cutting 18,000 roles in one fell swoop after acquiring Nokia. That was a brutal benchmark, but the layoffs didn’t stop there.
In 2023, the company shed 10,000 jobs throughout the year. Then, in January 2025, it trimmed less than 1% of its staff, adopting a tough, performance-driven approach reminiscent of Elon Musk’s no-nonsense style.
By May 2025, Microsoft was at it again, axing over 6,000 positions—about 3% of its global workforce—primarily targeting middle management. These cuts aimed to flatten hierarchies and boost direct lines between workers and top executives.
Fast forward to last month, when Bloomberg flagged potential layoffs in Microsoft’s sales division. That report proved prescient with this week’s announcement of 9,000 more jobs on the chopping block. The company is relentless in reshaping its structure.
Microsoft isn’t just cutting for the sake of cutting. With a workforce of 228,000 as of last summer, the company is redirecting resources to dominate the AI race and other key areas like its Azure cloud business.
The numbers tell a story of success amid the pain. In its latest quarter, Microsoft posted a staggering $26 billion in net income and $70 billion in revenue, blowing past Wall Street’s expectations. It’s also projecting a robust 14% year-over-year revenue growth.
Investors seem unfazed by the layoffs, with Microsoft’s shares climbing over 17% so far in 2025. That’s a signal the market approves of this leaner, meaner approach to growth.
Yet, not everything is rosy. Last month, the Financial Times reported Microsoft might walk away from its partnership with Sam Altman’s OpenAI if they can’t align on the size of Microsoft’s future stake. For now, an existing contract through 2030 keeps things stable if talks stall.
Microsoft’s spokesperson told CNBC, “We continue to implement organizational changes.” This hints at a calculated, ongoing effort to adapt to a fast-moving tech landscape without sentimentality for headcount.
Meanwhile, Microsoft isn’t alone in tightening its belt. Other software players like Chegg and CrowdStrike have also trimmed staff this year, with CrowdStrike still reeling from a massive 2024 outage that crippled airlines, banks, and hospitality.
For investors, Microsoft remains a powerhouse worth watching. Its focus on AI and cloud expansion, paired with strong financials, suggests resilience, but keep an eye on how these cuts impact innovation. Could over-pruning risk long-term growth?
For workers, the message is stark: adapt or be left behind. If you’re in tech, upskilling in AI or cloud computing might be your best hedge against the next round of cuts. Microsoft didn’t respond to requests for comment, leaving many questions unanswered.