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Business • Jul 02, 2025

Microsoft announces 2nd major layoff wave

Microsoft is letting go of about 9,000 employees as part of its ongoing restructuring.
This comes just after the company's fiscal year ended and follows a previous round in May, which saw 6,000 job losses.
The move is aimed at streamlining teams and adapting to industry shifts.

TL;DR

Sales, marketing, and gaming teams are impacted

This time, it's not just engineers—sales, marketing, and gaming teams (including Xbox divisions like King and ZeniMax) are also impacted.
Microsoft says the changes will help them stay nimble in a fast-changing market.
Meanwhile, sales chief Judson Althoff is on a planned two-month break during all this.

Microsoft usually times layoffs around fiscal year-end

Microsoft often times these layoffs around its fiscal year-end to flatten management layers and boost team performance.
This strategy is reported to help make their restructuring more effective each year.