Microsoft Announces Workforce Reduction

(MENAFN) US-based tech powerhouse Microsoft revealed on Wednesday that it intends to let go of approximately 9,000 staff members, accounting for about 4 percent of its total global headcount.

The affected positions span across multiple departments, geographical locations, and levels of expertise, as reported by a news agency.

This latest downsizing marks the company’s fourth such move in 2025. In January, the technology leader reduced its workforce by roughly 1 percent.

It followed that with over 6,000 job eliminations in May, and another 300 positions were removed in June.

In the previous year, Microsoft also made significant cuts, terminating 10,000 roles. As of June 2024, the company's workforce stood at 228,000 employees.

A more extensive round of job losses occurred in 2014 after Microsoft acquired Nokia’s devices and services segment, resulting in 18,000 layoffs—potentially the most substantial in corporate history.

The news agency also noted that Microsoft’s current objective is to reduce the number of management layers separating senior leadership from front-line contributors.

This move mirrors the company's earlier actions during the May layoffs.

“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” Phil Spencer, Microsoft’s CEO of gaming, stated in a memo to the gaming division on Wednesday.

Despite the restructuring, Microsoft remains financially strong.

The company posted nearly USD26 billion in net profit on USD70 billion in revenue in its most recent quarterly report, exceeding Wall Street forecasts.

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