Hyderabad: Microsoft is letting go of nearly 7,000 employees across the globe in what marks the tech giant’s second-largest workforce reduction to date. The company said the cuts will affect around 3% of its total global headcount of 2.28 lakh employees.
These layoffs, announced amidst sweeping changes across the tech industry, will impact employees across all levels, departments, and geographies. The company stated the decision is part of an effort to stay ahead of rapid industry shifts and maintain a competitive advantage.
After the massive round of 10,000 layoffs in 2023, this new phase comes as Microsoft sharpens its focus on cost management and organisational efficiency. According to internal sources, the current layoffs will be heavily concentrated in mid-management roles, where Microsoft is aiming to streamline operations by expanding managerial bandwidth rather than multiplying positions.
In plain terms, fewer managers, broader responsibilities.
The company said the move is a direct response to the evolving demands of the tech market, requiring leaner operations and sharper execution. Microsoft clarified that the restructuring was necessary to align with its long-term growth and innovation goals.
These cuts come even as Microsoft maintains strong financials, indicating that the decision is strategic rather than reactive. The ripple effect is expected to be global, with thousands of roles eliminated across diverse teams and functions.
