Microsoft Announces Major Job Cuts Amidst Sales Team Restructuring
Microsoft announced on Wednesday that it is laying off approximately 9,000 employees, representing nearly 4% of its global workforce. This move is part of the tech giant’s ongoing organizational restructuring efforts.
The cuts primarily affect the sales teams and are a strategic move by Microsoft to reduce management layers and increase operational agility in a dynamic marketplace. This latest round of layoffs follows a previous workforce reduction of roughly 6,000 employees just weeks earlier, underscoring the ongoing challenges faced by even the most successful technology companies.
Microsoft CFO Amy Hood previously indicated the company was focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers.”
Despite the job cuts, Microsoft shares have gained about 16% in 2025, with the company maintaining its position as one of the world’s two most valuable companies alongside Nvidia.
The restructuring comes as Microsoft continues to invest heavily in artificial intelligence and cloud computing services. Analysts are expecting both Microsoft and Nvidia to potentially reach the $4 trillion market cap club this summer.
As of the end of fiscal 2024, Microsoft employed approximately 228,000 workers worldwide, with around 120,000 based in the United States.
Source: Investopedia