Microsoft will restructure and lay off 6,000 employees in a new round of layoffs

Microsoft to Lay Off Nearly 4% of Workforce Amid AI Investment Surge

Microsoft has announced it will lay off nearly 4% of its global workforce, as part of a broader restructuring aimed at cutting costs while managing massive capital investments in artificial intelligence.

• Total jobs impacted: ~9,100 employees

• Current workforce: ~2,28,000 (as of June 2024)

• Previous layoffs: ~6,000 jobs in May 2025

These cuts are largely aimed at reducing organisational layers, including middle management roles, and streamlining operations across product and procedural lines. The move comes as Microsoft faces shrinking cloud margins, partly due to heavy AI infrastructure spending—estimated at $80 billion for FY2025.

Key Divisions Affected:

• Sales & Marketing teams (broadly impacted)

• King Division (Barcelona): ~200 job cuts (10% of staff), maker of Candy Crush

Wider Tech Industry Trend:

Microsoft’s layoffs echo similar actions across major tech players investing heavily in AI:

• Meta (Facebook): Cut ~5% of underperforming employees

• Google (Alphabet): Several rounds of layoffs across multiple departments

• Amazon: Recent cuts in books division, devices & services, and communications units

These decisions are driven by a combination of economic uncertainty, cost inflation, and a strategic shift toward leaner operations to fund long-term AI ambitions.