Microsoft cuts 6,000 jobs amid AI restructuring
WASHINGTON, UNITED STATES — Tech giant Microsoft announced it is laying off about 6,000 employees in a move that affects all levels, teams, and geographies within the company.
The cuts, roughly 3% of its global workforce, include roles at LinkedIn and offices worldwide. It represents Microsoft’s largest round of layoffs since 2023.
A company spokesperson told CNBC that the decision was part of “organizational changes necessary to best position the company for success in a dynamic marketplace.”
The layoffs are not performance-related and are intended to streamline management layers and reallocate resources as Microsoft doubles down on artificial intelligence and cloud computing.
Impact felt across Microsoft departments and regions
The reductions span various departments, with software engineers and technical staff among the hardest hit.
In Washington state, home to Microsoft’s Redmond headquarters, about 2,000 positions were eliminated, including 1,510 office roles.
Silicon Valley offices also saw significant cuts, particularly in software engineering, product management, and applied sciences.
Among those affected was Gabriela de Queiroz, Director of Artificial Intelligence for Microsoft for Startups. She described her departure as “bittersweet,” writing, “I’m heartbroken to see so many talented people I’ve had the honor of working with being let go. These are people who cared deeply, went above and beyond, and truly made a difference.”
Strategic shift toward AI and efficiency
The layoffs come as Microsoft invests heavily in AI, with CEO Satya Nadella recently revealing that up to 30% of code in some projects is now written by AI tools.
The company reported $25.8 billion in quarterly net income and has signaled a strategic pivot toward building out its AI and cloud infrastructure.
Microsoft’s restructuring follows similar moves by other tech giants, including Amazon, Google, and Workday, as the industry recalibrates for the next wave of AI-driven growth.
