Microsoft Announces 3% Global Workforce Reduction

Microsoft has announced a global restructuring effort, resulting in the elimination of approximately 3% of its workforce worldwide. The layoffs, affecting various levels and departments across all regions, are part of the company's efforts to adapt to a rapidly changing market landscape. With a global workforce of around 228,000 employees, as listed on its LinkedIn page, this move is expected to impact over 6,840 employees. This latest round of layoffs follows a smaller reduction in January 2025. The effects of this decision on Microsoft's gaming division are currently unclear. A company spokesperson stated that the goal is to implement necessary organizational adjustments to ensure the company's success in a dynamic environment. The layoffs aim to streamline management layers and are not performance-based, according to reports. Microsoft's gaming operations have previously undergone significant reductions, including the loss of 1,900 jobs in 2024 and an additional 650 positions in September of the same year. Despite these changes, the company reported a net income of $25.8 billion for the quarter ending March 31, 2025, representing an 18% year-over-year increase, with its gaming segment experiencing 5% growth.