In a surprising move, Microsoft is preparing to reduce its global workforce by 3%. If you work at Microsoft or know someone who does, you might already feel uncertainty. With approximately 228,000 employees worldwide, this decision could affect more than 6,500 people.
Although Microsoft is known for its stability and growth, this latest round of job cuts is one of the company’s biggest since it laid off 10,000 employees in 2023. The news, first reported by CNBC, shows that even the most profitable tech companies continue to make difficult staffing choices.
Layoffs are not tied to performance
You might wonder why these cuts are happening now, especially since Microsoft is not facing any financial trouble. Quite the opposite is true. Just this April, Microsoft reported revenue of US$70.1 billion for the quarter, a 13% increase from the previous year. Profits also soared to US$25.8 billion, an 18% rise. These results were better than what analysts had predicted.
Despite this success, Microsoft is going ahead with the cuts. According to a company spokesperson, this move is not based on individual employee performance. Instead, the company says it is part of a broader plan to adjust and remain competitive in today’s fast-changing tech market.
The spokesperson told TechCrunch, “We continue implementing organisational changes necessary to best position the company for success in a dynamic marketplace.” In other words, this is a strategic move to stay ahead, not a punishment for underperformance.
Earlier this year, in January, Microsoft also carried out layoffs, which were reportedly tied to employee performance. This time, the company has made it clear that job cuts are not related to how well people are doing their jobs, which may be a slight relief to some, though it still brings stress and worry for many workers.
Cuts to affect all teams and regions
If these layoffs might only affect specific departments or locations, think again. Microsoft said the cuts will be felt across various levels, teams, and global offices. This means no part of the company is untouched, and any employee could be at risk.
This move comes as other major tech companies are also tightening their belts. Amazon and Meta both made similar decisions earlier this year, with their own rounds of layoffs announced in January. It’s becoming a trend in Big Tech as companies reevaluate how they operate and prepare for future shifts in the industry.
While it’s never good news to hear about job losses, it’s worth noting that companies like Microsoft are trying to adapt quickly. They are not downsizing due to a lack of money but because they believe smaller, leaner teams might help them move faster and stay more competitive.
For now, if you’re part of the tech world or looking to join it, it’s clear that stability is no longer guaranteed—even at the biggest and most successful companies. As the industry evolves, flexibility and adaptability are becoming as important as skill and experience.
