The 3% reduction in its global workforce is part of a strategy to strengthen key areas such as AI, amid a competitive and changing environment in the tech sector.
Microsoft has confirmed a new round of layoffs impacting between 6,000 and 7,000 employees worldwide, representing approximately 3% of its total workforce. The announcement, made in recent hours, marks the sixth major restructuring since 2023 and illustrates the company’s systematic effort to realign its resources towards strategic areas, especially artificial intelligence (AI).
The layoffs affect multiple divisions and hierarchical levels, including areas such as LinkedIn, Xbox, and international offices. Although specific details about which countries or departments are most affected have not yet been made public, the measure is part of an operational efficiency strategy and is not related to underperformance evaluations, as some of the cuts made in January of this year were.
A sustained restructuring since 2023
Microsoft has maintained a continuous pattern of workforce adjustment since it laid off 10,000 employees in January 2023. Over these two years, the company has enacted additional layoffs:
- January 2024: Following the acquisition of Activision Blizzard, about 1,900 jobs were cut in its video game division.
- June 2024: Around 1,000 positions eliminated in HoloLens and cloud services.
- September 2024: A further reduction of 650 jobs in Xbox.
- January 2025: Layoffs linked to performance, affecting about 2,000 employees.
- May 2025: A new wave of layoffs affecting between 6,000 and 7,000 employees, the second-largest cut since the pandemic.
These moves reflect a progressive and multi-stage restructuring with a common denominator: optimizing costs to invest more intensively in its commitment to artificial intelligence.
AI, the new strategic priority
Microsoft is decisively betting on becoming a dominant player in the AI sector, not only through its own developments but also through partnerships like the one with OpenAI, integrating its technology into key products such as Copilot for Microsoft 365, Azure AI Studio, and developer tools.
A company spokesperson stated that “we are continuing to implement the necessary organizational changes to better position the company for success in a dynamic market.” This phrase summarizes a philosophy shared by other tech giants such as Google, Amazon, or Meta, all engaged in cost rationalization processes while reinforcing their generative AI divisions.
Solid results in the cloud and pressure on margins
The layoff announcement comes weeks after Microsoft reported better-than-expected growth in Azure, its cloud services division. This performance reinforces expectations for strong financial results at the close of the quarter and aims to reassure investors amid still uncertain global economic conditions.
However, the exponential growth in demand for AI also requires massive investments in infrastructure, data centers, high-performance processors (such as those from NVIDIA), and hiring specialized talent. For this reason, Microsoft and other industry giants are implementing cuts in areas deemed non-strategic to protect their profit margins.
Human impact and sector reactions
The specifics of how these layoffs will impact Microsoft’s European and Latin American subsidiaries are still unknown, but the company has assured that it will provide severance and transition support to affected employees.
Analysts believe that these measures reflect a new paradigm in tech employment: less general expansion and more focused investment in areas such as AI, cybersecurity, cloud computing, and collaborative platforms.
In a context marked by the acceleration of automation and pressure for efficiency, Microsoft is redrawing its organizational map to solidify its leadership in the sector that will define the industry’s future: artificial intelligence.
Sources: Reuters and elchapuzasinformatico.com