Microsoft to lay off 9,000 workers in second wave of major job cuts

Jul 02, 2025 08:55 PM IST

Microsoft on Wednesday said it is laying off thousands of employees, its second mass layoff in months.

The company declined to say how many people would be laid off, but said it would comprise less than 4% of the workforce it had a year ago, which would come to around 9,000 people, according to the Associated Press.

Microsoft said the cuts will affect multiple teams worldwide, including its sales division and its Xbox video game business.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” it said in a statement.

Also Read | Woman laid off by Microsoft in ‘last-minute meeting’ by super boss

“Even in the best of times, we have regularly adjusted our workforce to meet the strategic demands of the business,” the company added, according to AFP.

Bloomberg, citing people familiar with the plans, reported that Microsoft’s Stockholm-based King division, which makes the popular game Candy Crush, is cutting 10% of its staff, or about 200 jobs.

Other European offices, such as ZeniMax, also began informing employees that job cuts were happening.

The company, which had about 228,000 employees worldwide as of June 2024, had announced layoffs in May, affecting around 6,000 workers.

That layoff round was the second-largest since 2023, when approximately 10,000 positions were eliminated. It coincided with Microsoft’s pivot toward AI to stay ahead of rivals.

Also Read | 

In April, Microsoft informed employees that it would use third-party firms to handle more software sales to small and mid-sized customers. The company stated it regularly assesses its organisational structure to ensure investments are aligned with long-term growth.