Microsoft is laying off thousands of workers in a second wave of job cuts, following previous reductions earlier this year. The layoffs will impact fewer than 4% of the company’s total workforce.
The Seattle Times first reported the news, and Microsoft confirmed the move, citing ongoing organizational changes to better position the company in a rapidly evolving tech landscape.
“These adjustments are necessary to align with our strategic priorities,” a Microsoft spokesperson told FOX Business. “We continue to make changes that support our long-term goals.”
In May, Microsoft announced it would cut approximately 6,000 jobs. Additional reports last month also pointed to smaller layoffs across various departments.
The company said its goal is to improve agility and streamline operations by reducing layers of management and increasing efficiency across teams.
Microsoft spans multiple sectors, offering software, cloud computing, gaming, and productivity tools. It has recently ramped up investments in artificial intelligence across its product lines.
CFO Amy Hood noted in the April earnings call that Microsoft’s workforce was 2% larger year-over-year at the end of March, but slightly smaller compared to the previous quarter.
According to Layoffs.fyi, over 63,800 tech workers across the industry have faced layoffs in 2025 alone — a trend driven by shifting priorities and cost-cutting efforts amid economic uncertainty.