Microsoft Corp. MSFT announced on Tuesday it will eliminate approximately 6,000 positions globally, representing 3% of its workforce, as the tech giant seeks to streamline operations and reduce middle management layers.
What Happened: “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” Microsoft said in a statement, reported the Financial Times.
The Redmond, Washington-based company joins other tech giants, including Meta Platforms Inc. META and Amazon.com Inc. AMZN, in workforce reductions while simultaneously increasing investments in artificial intelligence technologies.
This latest round follows performance-related cuts affecting about 2,000 Microsoft employees earlier this year. The company previously eliminated approximately 2,500 positions from its Xbox division after acquiring Activision Blizzard, along with 1,000 roles across its HoloLens and Azure cloud computing units in the same period.
Why It Matters: Microsoft’s CFO Amy Hood recently told investors the company was focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers.” CEO Satya Nadella had earlier indicated that between 20-30% of the company’s code was now being written using AI tools.
The layoffs come despite Microsoft’s strong financial performance. The company reported better-than-expected earnings for the quarter ending March and has outperformed its peers since the beginning of 2025, recently reclaiming its position as the world’s most valuable company.
The cuts affect international offices and wholly-owned subsidiaries like LinkedIn, reflecting a broader trend of workforce rebalancing across the technology sector.
Price Action: Microsoft Corp.’s stock closed at $449.14 on Tuesday, down 0.03% for the day. In after-hours trading, the stock dipped further to $448.27, a decline of 0.19%. Year to date, Microsoft’s stock has gained 7.30%.
Microsoft is experiencing modest growth but continues to benefit from strong momentum. However, the stock scores lower on quality and valuation metrics, according to Benzinga Edge Stock Rankings. MSFT maintains a positive trend across both short- and long-term indicators. Sign up to learn more.
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