Microsoft to lay off 9,000 employees in its second biggest round of job cuts ever; read what the company said

Microsoft has confirmed it would get rid of roughly 9,000 positions throughout its world workforce. This marks the company’s second important round of layoffs this yr, and its second largest total, following the cuts of 11,000 jobs final yr and 6,000 earlier this May, as half of an ongoing restructuring effort to streamline operations and scale back administration layers.The cuts characterize lower than 4% of Microsoft’s 228,000-person workforce and can impression employees throughout a number of divisions, geographies, and expertise ranges. Xbox gaming division faces significantly steep reductions, with sources indicating substantial job losses in the gaming sector.

Xbox hit hardest in this round of job cuts

Xbox chief Phil Spencer addressed affected employees straight, stating the company should “end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.”The gaming cuts embrace roughly 200 positions at King, the Candy Crush developer Microsoft acquired via Activision Blizzard, representing 10% of that division’s workers. European subsidiaries together with Zenimax additionally confirmed job reductions, in accordance to the Seattle Times.Spencer acknowledged the tough timing in his inside memo: “I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.”

Microsoft targets center administration layers in effectivity drive

The layoffs particularly goal lowering organizational hierarchy, with Microsoft specializing in eliminating administration positions that create obstacles between particular person contributors and senior executives. This strategic strategy mirrors comparable strikes by tech opponents Amazon and Meta, who’ve streamlined their company buildings to enhance decision-making pace.Company sources point out the restructuring goals to “increase agility and effectiveness” by eradicating redundant supervisory roles whereas preserving front-line expertise and management positions. The flattened organizational construction represents Microsoft’s broader effort to keep competitiveness in quickly evolving expertise markets.

Layoffs proceed regardless of Microsoft’s robust monetary efficiency

This newest round follows Microsoft’s May announcement chopping over 6,000 positions, primarily in product and engineering roles, plus a further 305 cuts in June. The company has eradicated greater than 15,000 jobs since January 2024, together with its biggest ever round in 2025, which noticed round 11,000 cuts. Despite the workforce reductions, Microsoft reported sturdy monetary outcomes with $25.8 billion in web revenue for its most up-to-date quarter, representing 18% year-over-year development. CNBC reported the company stays amongst the S&P 500’s most worthwhile enterprises.“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said.The layoffs coincide with the begin of Microsoft’s 2026 fiscal yr, when the company historically declares organizational restructuring. Affected employees will obtain severance packages, healthcare protection, and job placement help, with precedence consideration for different Microsoft Gaming positions.Spencer emphasised the contributions of departing employees: “Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted.”