Microsoft Lays Off 6,000 in Major Restructuring

Microsoft is laying off approximately 6,000 employees, or about 3% of its global workforce, in its largest job reduction since early 2023. Nearly 2,000 of the affected positions are located near the company's Redmond, Washington headquarters, while the cuts also impact teams across all levels and regions, including divisions such as LinkedIn and Xbox. The layoffs follow a series of smaller performance-based cuts earlier this year and are part of a strategic realignment to reduce management layers and streamline operations. Microsoft is investing up to $80 billion in AI and cloud infrastructure this fiscal year, shifting resources away from pandemic-era expansion to high-priority technology areas. Company leadership maintains that these layoffs are not due to financial distress but are aimed at positioning Microsoft for long-term competitiveness in a rapidly evolving market. The move reflects a wider trend of tech companies refocusing on efficiency amid broader economic uncertainty.