Mass Layoffs Hit Microsoft

Newsweek

13-05-2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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Microsoft is laying off thousands of its employees this week, according to media reports.
Newsweek reached out to Microsoft for comment via email.
Why It Matters
More than 100 large companies across various industries are laying off employees in May as businesses across the country are grappling with a shifting landscape including the potential for tariffs and emerging technologies that are reshaping the workforce. Others are seeking to improve efficiency and maximize profits by cutting the number of employees on the payroll.
What to Know
Nearly 3 percent of all Microsoft employees, about 6,000 people, are receiving layoff notices, reported several tech and financial news outlets including CNBC and GeekWire.
The layoffs are affecting a range of levels and teams across the United States, GeekWire reported.
A Microsoft sign is seen on March 13, 2020 in New York City.
A Microsoft sign is seen on March 13, 2020 in New York City.In June 2024, Microsoft had about 228,000 employees but some have been laid off since, according to the company's website. This included 126,000 working in the United States and 102,000 internationally.
According to the group Legal Aid at Work, a mass layoff occurs under the WARN Act when at least 50 employees are laid off during a 30-day period and affects one-third of the workplace if 500 employees are laid off during a 30-day period regardless of the company's size or an entire work site is closed down and at least 50 employees are laid off during a 30-day period.
In January 2023, Microsoft laid off about 10,000 employees. There have been some layoffs since then, including some performance-based layoffs in January, per CNBC, but those have been in smaller numbers.
Other tech companies, such as Meta, have also been affected by large-scale layoffs so far this year.
Microsoft's stock dropped about 1.5 percent by noon on Tuesday. So far in 2025, its stock has risen about 7 percent.
What Happens Next
Microsoft spokesperson Pete Wootton told The Verge: "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace."
Microsoft CFO Amy Hood said during the company's third-quarter conference call on April 30: "Operating expenses increased two percent and three percent in constant currency, lower than expected due to our focus on cost efficiencies as well as investments that shifted to quarter four. Operating margins increased 1 point year over year to 46 percent, better than expected as we continue to focus on building high-performing teams and increasing our agility by reducing layers with fewer managers."
What Happens Next
Many details about the layoffs including who in particular would be affected remained unknown publicly. More companies could announce layoffs this year, but it's yet to be seen which could do so.