Mumbai, July 2: Microsoft is set to lay off nearly 9,000 employees in its latest round of job cuts, as part of a broader restructuring plan tied to its aggressive investments in artificial intelligence (AI) and operational streamlining. The layoffs come just as Microsoft enters its 2026 fiscal year, a period when such restructuring is common. As of June 2024, Microsoft employed about 45,000 people in sales and marketing alone.

According to the CNBC report, the Microsoft layoffs represent less than 4% of the company’s global workforce of 2.28 lakh employees. The company said the decision was made to “best position the company and teams for success in a dynamic marketplace,” with the cuts affecting roles across different departments, geographies, and seniority levels. Unlike the previous rounds that mainly impacted engineers and product teams, this round is expected to hit customer-facing and sales roles more severely, including employees in the Xbox division. Microsoft Layoffs in May 2025: Ahead of Cutting Middle Management Jobs This Month, Satya Nadella-Led Company Implements 2-Year Re-Hiring Ban on Laid Off Low Performing Employees.

Microsoft Layoffs: Another 9,000 Job Cuts

This is Microsoft’s third major layoff in 2025. In May, around 6,000 employees (around 3% of its workforce) were let go, followed by 300 more just a week later. In January, the company had already trimmed under 1% of its workforce due to performance reviews.

Despite the job cuts, Microsoft continues to post strong financial results. In the March quarter, the company reported USD 70 billion in revenue and nearly USD 26 billion in net income, beating Wall Street expectations. The stock recently hit a record high of USD 497.45 on June 26, making Microsoft one of the most valuable and profitable companies in the S&P 500. Disney Layoffs: Entertainment Giant Cuts Hundreds of Jobs as Part of USD 7.5 Billion Cost-Cutting Plan, Multiple Divisions Affected.

Last week, chipmaker Intel also announced fresh job cuts, laying off over 100 employees at its Santa Clara headquarters, as part of a restructuring initiative.

(The above story first appeared on LatestLY on Jul 02, 2025 08:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).