Microsoft Cuts 9,000 Jobs Despite 18% Net Income Gain

Microsoft has announced that it will cut approximately 9,000 jobs, representing just under 4% of its global workforce. This is the largest round of layoffs since 2023. The reductions span multiple divisions, geographies, and levels of seniority. The company continues to report robust financial results but seeks to streamline operations and adapt to rapid shifts in the technology landscape.

Microsoft made the move despite posting an 18% year-over-year increase in net income last quarter, reaching $25.8 billion. In its official statement, Microsoft said: “We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace.” The layoffs are expected to impact sales, customer-facing roles, and the Xbox gaming division.

The latest round is part of a broader restructuring effort that has now seen over 15,000 jobs eliminated this year, including 6,000 positions in May. Microsoft’s move reflects a wider trend among major technology companies, many of which are undergoing similar workforce reductions as they double down on artificial intelligence.

Microsoft's decision to lay off 9,000 employees is a strategic move aimed at streamlining operations and adapting to the rapidly changing technology landscape. The company's financial performance remains strong, with an 18% year-over-year increase in net income last quarter, reaching $25.8 billion. Despite this financial success, Microsoft is implementing organizational changes to better position itself in a dynamic marketplace.

The layoffs will affect various divisions, including sales, customer-facing roles, and the Xbox gaming division. This move is part of a broader restructuring effort that has already resulted in the elimination of over 15,000 jobs this year, with 6,000 positions cut in May. Microsoft's actions mirror a broader trend among major technology companies, which are also reducing their workforces as they focus on artificial intelligence.