Microsoft Layoffs 2025: 6,000 jobs cut amid AI push and cost pressures

Microsoft plans 6,000 layoffs (3% workforce) to streamline operations, focusing on AI and cloud. US cuts begin July 13, 2025.

Washington: There is an atmosphere of uncertainty all over the world, and in the meantime, big news of job loss has come to the fore. Tech giant Microsoft is once again going to do a big layoff, reports Dynamite News correspondent.

The company has announced that it is going to lay off about 6,000 employees from the global workforce. Under this, the management layer will be reduced so that the organization can be made more agile and focused.

What is the reason for the layoff?

A Microsoft spokesperson said that this layoff will be less than 3% of the total employees of the company, and it will be done in different geographies. It will also include employees of different levels and LinkedIn staff.

The spokesperson said that the company is taking this step to maintain its strong position in the rapidly changing market. This is not the first time Microsoft is doing layoffs. Earlier in January 2023, the company fired 10,000 employees. At that time the HoloLens augmented reality unit and other hardware projects were affected.

How many people are in the company?

As of June 2024, Microsoft had about 228,000 employees. The company says that it keeps changing its workforce from time to time so that it can focus on priority areas.

This time, about 2,000 employees will be laid off at the US headquarters in Redmond, Washington, and this process will start on July 13, 2025.

AI and cost reduction

Microsoft has had to spend heavily on data centers and AI services in the last few years. Azure cloud and AI units are operated through these data centers. In the last financial year, the company has spent more than $80 billion on its server farms, which has increased the cost pressure.

Just last year, CEO Satya Nadella said that with the help of artificial intelligence (AI), the company is succeeding in saving labor costs. Recently, at a JP Morgan conference, Microsoft's finance executive Billough said that with the help of AI, millions of dollars are being saved in customer support in a year.

Last month, Microsoft told its employees that it is working on increasing software sales through third-party firms so that it can reach small and mid-size customers. Microsoft is not the only company that is doing layoffs. This year other big tech companies like Meta and Salesforce have also done layoffs.