Microsoft lays off 9,000 employees to streamline operations and focus on AI and cloud growth
July 2, 2025 – Microsoft is cutting 9,000 jobs, or about 4% of its global workforce, in a major reorganization aimed at streamlining operations and focusing on AI and cloud growth. The move affects roles across sales, marketing, Xbox, and corporate teams.
This follows a 6,000-job cut in May, as the company pushes to reduce management layers and shift resources toward high-growth areas like AI infrastructure.
🧠 Why It Matters
- Supports Microsoft’s ~$80B AI/cloud investment strategy
- Restructuring despite strong Q3 results: $70B revenue, $26B profit
- Xbox teams hit hard; projects like Everwild reportedly canceled
📉 Stock Reaction
- Microsoft (MSFT) is down 0.35% in today’s trading
📅 Timeline at a Glance
| Date | Layoff Impact |
|---|---|
| May 2025 | ~6,000 jobs cut |
| June 2025 | ~300 roles (Redmond) |
| Jul 2 | ~9,000 global layoffs |
Microsoft joins other tech giants in trimming staff as it pivots toward leaner, AI-focused growth.