Microsoft might cut around 3% of its global workforce – as a part of their bigger plan to reorganize, reshape, and improve companies efficiency.
This round of job cuts isn’t due to employee performance. A Microsoft spokesperson confirmed the decision is about reshaping the company’s structure, not punishing workers. The goal is to make the business more focused and efficient as it looks toward the future. One change involves reducing the number of management layers to help teams work faster and more smoothly.
With about 228,000 people working at Microsoft around the world, 3% means several thousand jobs are on the line. It’s one of the company’s largest layoff rounds since early 2023, when around 10,000 jobs were cut. There was also a smaller round of performance-based cuts earlier this year.
What makes this round of layoffs surprising is that Microsoft is currently doing well financially. In its last earnings report, the company showed strong numbers and even raised its forecast for the months ahead. Its stock price is also riding high, recently closing at $449.26 — its highest mark in 2025 so far. In July 2024, it hit a record of $467.56.
While business looks good from the outside, changes are happening inside the company. In recent months, Microsoft has also updated its internal policies around employee performance. Workers who aren’t meeting expectations may now be put on formal improvement plans. If they still fall short, they can be let go — and they won’t be able to apply for another job at the company for two years. Microsoft says this helps the company stay focused on the roles that matter most.
This approach is part of a bigger shift. Microsoft, like many companies, is putting more of its energy into fast-growing areas like cloud services and new technologies. As it moves in that direction, some roles are becoming less important — and that’s where the cuts are happening.
It’s not just Microsoft making these kinds of decisions. Other big tech companies have also announced layoffs recently. Just last week, cybersecurity firm CrowdStrike said it would be cutting 5% of its staff. Across the industry, companies are adjusting their teams and budgets to match new priorities and deal with a slower hiring environment.
Microsoft CEO Satya Nadella spoke earlier this year about changes in the company’s sales strategy. He explained that some parts of Microsoft’s cloud business weren’t growing as fast as expected, even though newer services were doing well. That’s led the company to rethink how it sells and supports certain products.
For employees affected by the layoffs, Microsoft is offering support during the transition. This includes severance packages and resources to help them find new jobs. But even with those steps, losing a job is never easy — especially when it comes as a surprise.
These changes show that even successful companies sometimes have to make tough choices. Microsoft is trying to prepare for what’s ahead by simplifying how it works and focusing on areas it believes will grow the most in the coming years. Still, for the thousands of workers who are now out of a job, the news is tough — and a reminder that no company, no matter how big, is immune to change.
