Microsoft Plans to Lay Off 9,000 Employees Amid Restructuring and AI Focus
New Delhi, 2nd July 2025: In another major workforce reduction, tech giant Microsoft is reportedly preparing to lay off around 9,000 employees, accounting for nearly 4% of its global workforce. This marks the company’s second significant layoff this year, following the termination of 6,000 positions in May.
According to sources, the move is part of a broader restructuring strategy aimed at aligning resources with Microsoft’s growing investment in artificial intelligence (AI). Departments such as sales, marketing, and Xbox are expected to be impacted the most.
A Microsoft spokesperson confirmed the development, stating:
“This is part of an organizational restructuring to streamline operations and reduce management layers.”
The layoffs are expected to hit employees working on legacy projects, as the company pivots toward next-generation technologies and AI-driven platforms.
Tech Industry Facing Continued Job Cuts
The announcement is the latest in a continuing wave of layoffs across the global tech sector. Microsoft, which had already downsized its workforce multiple times in 2023 and 2024, is now focusing on optimizing its team structures to stay competitive in a rapidly evolving landscape.
Support for Affected Employees
Microsoft has assured that affected employees will receive support packages and assistance in finding new job opportunities. Despite this, employee unions and workplace analysts have expressed concerns about declining morale and the long-term impact of repeated layoffs.
“While the company’s restructuring may be strategically aligned with future goals, this is undoubtedly a tough time for the workforce,” an industry analyst commented.
Microsoft’s Global Footprint
Microsoft is currently the world’s second-largest technology company, employing over 2.28 lakh people across 190 countries. Its global headquarters is located in Redmond, Washington, spread over 500 acres with 125 buildings, offering extensive facilities including parks, gyms, and recreational areas.
