Microsoft Cuts 6,000 Jobs to Streamline Operations and Bolster AI Investment

On May 13, 2025, Microsoft laid off roughly 6,000 employees, or 3% of its global workforce, in one of its largest job cuts since 2023. The layoffs hit multiple divisions, including LinkedIn and Xbox, and mainly affected middle managers and non-technical roles. Workers across all regions received last-minute termination notices, with nearly 2,000 job losses reported in Washington state alone.

This move comes despite Microsoft posting strong quarterly earnings of $70 billion. The company is reallocating resources to back an $80 billion push into AI infrastructure and services for the 2025 fiscal year. By trimming management layers, Microsoft aims to boost its engineer-to-manager ratio and accelerate product development cycles.

Also read : Microsoft Launches Copilot Vision for Windows 11 with THESE Features

Executives view the restructuring as a necessary step to remain competitive in AI and cloud services. Employees expressed frustration over the abrupt nature of the cuts, but analysts argue the cost savings help offset Microsoft’s aggressive spending in capital-heavy AI projects.

As Microsoft pivots toward growth areas like Azure and Copilot, the signal is clear. Even during strong financial performance, the company won’t hesitate to cut jobs if it helps fund its future bets.