Microsoft has announced plans to lay off approximately 9,000 employees as part of a broader corporate restructuring, affecting under 4 percent of its global workforce.
The job cuts will span multiple departments, geographic regions, and seniority levels, according to a source familiar with the decision who spoke to CNBC. The move coincides with the beginning of Microsoft’s 2026 fiscal year, a period when the tech giant traditionally introduces major internal changes.
“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a spokesperson said in an emailed statement.
This marks Microsoft’s third round of layoffs this year. In January, the company trimmed a small number of roles tied to performance. More than 6,000 employees were let go in May, followed by at least 300 additional cuts in June. The company employed 228,000 people as of June 2024.
Phil Spencer, head of Microsoft’s gaming division, told staff in a memo that the unit will eliminate certain projects and streamline leadership layers to boost agility and sharpen its focus on key growth opportunities.
The Redmond-based firm posted $26 billion in profit on $70 billion in revenue for the March quarter, exceeding analyst expectations. Company leaders project 14 percent revenue growth for the June quarter, driven by gains in cloud computing and enterprise software.
Microsoft shares hit a record $497.45 on June 26 but dipped slightly by 0.2 percent on Wednesday, while the S&P 500 advanced 0.5 percent.
Microsoft joins a growing list of tech companies—including Autodesk, Chegg, and CrowdStrike—that have scaled back in 2025. Earlier in the day, payroll firm ADP reported the U.S. private sector shed 33,000 jobs in June.
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