Microsoft has laid off 6,000 employees worldwide in its largest job reduction since early 2023, accounting for nearly 3 per cent of its global workforce.

The company confirmed the move on Tuesday, issuing notices to affected employees as part of a sweeping restructuring aimed at streamlining operations and trimming management layers.

The tech giant, which employed 228,000 full-time workers as of June 2024, did not specify which roles or departments were affected, but sources indicated that the layoffs spanned multiple regions and job levels. 

“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” Microsoft stated in a brief statement.

This fresh round of layoffs comes on the heels of a smaller, performance-based reduction earlier this year.

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However, the current cuts are more extensive and unrelated to employee performance, a company spokesperson clarified in a statement.

The layoffs have claimed the job of Ron Buckton, a senior software development engineer who had worked at Microsoft for 18 years.

Buckton played a crucial role in improving the TypeScript compiler and language service, leading efforts that delivered a tenfold increase in build speeds and editor responsiveness.

Announcing his departure on X (formerly Twitter), Buckton wrote, “Roughly a decade of that time working on TypeScript, I have unfortunately been let go in the latest round of layoffs.” He added, “I need to take a few days to process before I start looking for work. Thanks to everyone who’s been part of my journey so far.”

Also affected was Gabriela de Queiroz, a director of AI and advisor to startups in artificial intelligence.

“Bittersweet news to share: I was impacted by Microsoft’s latest round of layoffs,” Gabriela posted on X.

Despite the job losses, Microsoft’s financial position remains strong.

The firm has reported steady profits and solid revenue growth in recent quarters, buoyed by its ongoing investments in artificial intelligence.

During an earnings call in April, chief financial officer Amy Hood explained the rationale behind the organisational shift, saying, “We are focused on building high-performing teams and increasing our agility by reducing layers with fewer managers.”

Hood also noted that Microsoft’s workforce in March 2025 was still 2 per cent larger than it had been a year earlier, despite a modest decline from December 2024.

The current wave of layoffs mirrors a similar exercise in early 2023, when Microsoft cut 10,000 jobs—around 5 per cent of its workforce at the time—as it recalibrated business strategies in response to evolving market demands.

The broader tech industry has faced a turbulent period, with firms recalibrating operations while pursuing aggressive AI investments

Microsoft’s move signals a continued shift toward leaner, faster, and more strategically aligned teams, even as it consolidates its dominance in the artificial intelligence race.