Microsoft may lay off 10% of employees this month: Report
What's the story
Microsoft is planning a major round of layoffs, with teams in Gaming, Azure, and Sales likely to be affected. The move could see between 5% and 10% of its global workforce being impacted, according to a report by HR Digest. The company has not yet confirmed or denied the reports of these impending job cuts, which are likely to be announced in the third week of January.
Restructuring plan
Layoffs could be part of restructuring strategy
The potential layoffs are said to be part of a larger restructuring strategy by Microsoft. The company is looking to cut down on middle management layers and improve the individual contributor to manager (IC) ratios. This would mean a shift toward more individual contributors in its workforce, as opposed to managers.
Workforce size
Microsoft had around 228,000 employees as of June 2025
As of June 2025, Microsoft had a global workforce of around 228,000 full-time employees. The company had laid off nearly 15,000 employees last year. The latest reports about possible job cuts come after Microsoft's announcement last month to invest $17.5 billion in India over four years (2026-2029) for large-scale AI adoption.