Microsoft to Slash 9,000 Jobs in Second Major Layoff Wave

Microsoft has started another round of job cuts, impacting about 9,000 employees, as per Bloomberg reports. This accounts for less than 4% of its global workforce of 228,000. The company confirmed that the cuts will affect multiple teams, locations, and levels of seniority.

This adds to earlier rounds of layoffs in 2025. In May, around 6,000 employees were let go. Another 300 were cut in June. A smaller round in January affected less than 1% of staff. In total, more than 15,000 roles have been eliminated this year.

Gaming, Sales, and Marketing Affected

Microsoft’s gaming division, including Xbox, King, and ZeniMax, is among the hardest hit. King is letting go of around 200 employees. Other affected areas include sales and marketing teams in the US and Europe, along with mid-level operations roles.

The layoffs are part of efforts to reduce the number of management layers across the company. Microsoft is restructuring teams to flatten reporting lines and shift resources to other areas of focus.

The layoffs were announced at the start of Microsoft’s fiscal year 2026. This timing aligns with the company’s usual cycle of organisational changes, which often occur around the end or start of a fiscal year.

Read more: SEBI Introduces Common Contract Note with Unified VWAP for All Trades!

India Teams Not Impacted

Microsoft’s teams in India are not part of this layoff round. The company has recently committed $3 billion towards AI development and hiring in the region. 

Microsoft reported $26 billion in net income and $70 billion in revenue for the March quarter. The company commits $80 billion investment into expanding AI capabilities and data centres globally.

Conclusion

Microsoft’s decision to cut 9,000 jobs is part of ongoing structural changes, following several rounds of layoffs this year. The company is adjusting internal structures while continuing to invest in specific growth areas.

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