Microsoft announced it is cutting less than 3% of its workforce, affecting approximately 6,000 employees, including those at LinkedIn. This decision follows a successful earnings report driven by its Azure cloud business. The company aims to streamline processes and increase efficiency by reducing layers of management. This round of layoffs is distinct from previous performance-based reductions and marks the largest workforce cut since 2023 when 10,000 jobs were eliminated. Microsoft continues to invest heavily in AI infrastructure, despite economic uncertainties and tariffs impacting costs.
"We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," a Microsoft spokesperson told Fast Company.
Microsoft said that it regularly adjusts its workforce to meet the strategic demands of the business, and that by reducing layers with fewer managers, the company hopes to increase agility and enhance efficiency.
CEO Satya Nadella previously said Microsoft planned to spend $80 billion on data centers for artificial intelligence workloads in 2025, which could be even more costly with tariffs.
The layoffs would be the largest at the company since 2023, when Microsoft eliminated 10,000 jobs, and follows a small round of performance-based layoffs at the beginning of 2025.
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