Microsoft trims layers of management to boost team agility, with business units like Xbox and LinkedIn also affected by the organizational changes.

Microsoft announced Tuesday it will lay off 6,000 employees — about 3% of its workforce — as part of a broader strategy to prioritize artificial intelligence and improve overall performance.

Microsoft announces layoffs affecting 3% of its workforce while investing over $80 billion in AI infrastructure

Nearly 50% of the employee layoffs at Microsoft’s Washington office affected staff in software engineering roles, as the company has started to rely more on

Microsoft is cutting roughly 3% of its global workforce as the company shifts more resources toward the race to develop advanced artificial intelligence, the company confirmed on Tuesday.

In comparison, 2024 saw around 1,50,000 job cuts across 549 companies. In May 2025, big tech companies Amazon, Google, and Meta announced reductions in certain divisions while Microsoft announced its biggest round of job cuts since 2023, with over 6,000 employees being laid off across its businesses.

Microsoft began laying off about 6,000 workers Tuesday, nearly 3% of its entire workforce and its largest job cuts in more than two years as the company spends heavily on artificial intelligence.

Layoffs at Microsoft have been announced despite positive financial results, leaving employees alarmed over the future of work.

Gabriela de Queiroz, Microsoft’s AI director, was among 6,000 employees laid off. She shared a heartfelt post on X, expressing optimism and support: “To those affected - you’re not alone.