San Francisco, May 14: Satya Nadella-led Microsoft announced on May 13 (yesterday) that it would reduce its workforce by 3% as a part of ongoing organisational changes. Microsoft layoffs will affect 6,000 employees, a number which is considered the second biggest since 2023. The tech giant will cut the roles to reduce the management layers, said reports. The 3% workforce reduction will target all levels and teams of the employees working at Microsoft.

The latest round of Microsoft layoffs was already expected to target middle-level management and non-technical roles. This is the second-largest layoff since 2023, when the tech giant laid off 10,000 employees. In January, the company let go of more employees. A Microsoft spokesperson said the company announced layoffs to implement organisational changes to position it for success in a dynamic marketplace. DHL Layoffs: Germany-Based Global Logistics and Shipping Giant To Cut 364 Jobs, Shut Down California Facility Amid Distribution Strategy Shift in US.

According to a report by Reuters, tech giants have been spending more money on artificial intelligence (AI) and cutting costs in other areas to maintain their profit margin. This year, Google, Meta and Intel also announced layoffs in 2025, affecting hundreds of employees, to focus on  AI development, restructuring and other reasons. The report said that Google laid off hundreds of employees in 2024 to control costs and prioritise artificial intelligence. 

Microsoft had around 2,28,000 employees as of June 2024; however, the numbers decreased after the regular announcement of job cuts. The report highlighted that Microsoft layoffs are implemented regularly as the company aims to prioritise its staffing needs in the key areas. 

The report said that Microsoft was closely managing the profit margin pressure created by the heightened investment in artificial intelligence. This year alone, the tech layoffs affected 59,413 employees from 127 companies. The job cuts are not slowing down as more companies cut their headcounts to streamline their operations, cut costs, and focus on the main focus areas. Chegg Layoffs: US-Based Edtech Company To Cut 22% Workforce Amid Rise of AI Tools for Studies, Will Shut Down US Canada Services by End of 2025.

Microsoft invested USD 80 billion in capital spending this fiscal year to expand the data centres to offer faster and seamless AI services, easing capacity bottlenecks.

(The above story first appeared on LatestLY on May 14, 2025 10:40 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).