It earned $25.8 billion...but Microsoft will lay off 6,000 employees, 3% of its worldwide workforce

After a positive earnings report for the start of 2025, Microsoft has announced that it will lay off 6,000 workers, representing around 3 percent of the company’s global labor force.

These are not the first dramatic workforce reductions Microsoft has made.

In early 2023, the company eliminated more than 10,000 jobs, and in 2024, it cut more than 2,000 jobs from the tech giant’s video game division. While Xbox and Zenimax/Bethesda were affected in the cuts, the majority of jobs lost were by employees of Activision Blizzard.

During the pandemic, Microsoft saw a surge in demand for its cloud services, video conferencing, and other products. In response, the company expanded its workforce by approximately thirty-six percent from 2020 to 2022. The planned layoffs will involve fewer positions than were added in the past two years. Nevertheless, it is uncertain which employees will face layoffs and whether the more recently hired staff are at greater risk.

Why is Microsoft cutting jobs?

The most recent round of cuts was confirmed by Microsoft to CNBC, with a spokesperson for the company describing the layoffs as part of a series of “organization changes necessary to best position the company for success in a dynamic marketplace.”

According to CNBC, at least some of the cuts will come from the company’s headquarters in Redmond, Washington, where nearly 2,000 workers will reportedly be laid off.

Layoffs come at a time of financial success for the company

Microsoft held its Q3 earnings call with investors in late April, covering the period from January to March, and reported that it had generated more than $28.5 billion in net income and $70 billion in revenue. During the earnings meeting, Microsoft’s executive vice president and chief financial officer, Amy Hood, told investors that Microsoft cloud revenue had jumped 20 percent to $42.4 billion compared to last year.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.