Microsoft is laying off around 3% of its workforce, beginning Tuesday.
While Microsoft didn’t give an exact number, as of June 2024, the tech giant employed around 228,000 full-time workers, which means more than 6,600 employees could be laid off.
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“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement to CNBC.
It’s the largest layoff from the company since 2023, when it cut 10,000 jobs and froze salaries for full-time employees. (The company restarted salary raises based on performance in 2024.)
Microsoft said the new cuts will affect all locations and levels, including LinkedIn and Xbox, but the focus is on reducing managers, per the AP.
In January, Business Insider reported that layoffs at Microsoft were coming “soon,” focused on “underperforming employees” in various roles, including security, the company said. Those layoffs reportedly already occurred.
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Then, on an April earnings call, Chief Financial Officer Amy Hood said that the company would increase its “agility” by “reducing layers with fewer managers.” Microsoft reported better-than-expected results, with $25.8 billion in quarterly net income.
Microsoft, which is headquartered in Redmond, Washington, is currently the most valuable company in the world, with a market cap of $3.337 trillion at press time.