Microsoft is slashing 3% of its employees in another round of layoffs

Microsoft is preparing to lay off around 3% of its total employees across the globe, according to a new report from CNBC. With roughly 228,000 employees as of June, that means more than 6,500 people could lose their jobs in the coming weeks.

Do note that this would be one of the company’s biggest layoffs since early 2023, when it laid off 10,000 employees. In a statement, Microsoft said:

We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.

Microsoft has also confirmed that the new round of lay off isn’t related to performance reviews. This disheartening news for employees comes just weeks after Microsoft posted strong financial results.

Last month, the company reported $70.1 billion in revenue, up 13% from the year before. The net income stood at $25.8 billion, up by 18%. Intrestingly, these numbers beat Wall Street expectations. Despite the strong financial position, the upcoming layoffs are expected to affect teams across different levels, regions, and business units of Microsoft.

To catch you up, Microsoft also laid off a small number of employees in January. The company then said that those cuts were related to performance reviews. Now, the new layoffs appear to be part of broader restructuring within Microsoft.