Microsoft Cuts 6,000 Jobs Despite Sustained Profitability in Quarterly Reports

Microsoft has announced a reduction of nearly 3% of its total workforce.

Although the tech giant did not disclose the exact number of positions being eliminated, estimates suggest it could be around 6,000. As of June last year, Microsoft had 228,000 full-time employees, with approximately 55% located in the United States.

Headquartered in Redmond, Washington, Microsoft indicated that the layoffs will affect all levels and regions, primarily targeting management positions. Notifications were sent out on Tuesday.

“We are continuing to make the organizational changes necessary to ensure our company’s success in a rapidly changing market,” the statement from the company reads.

Earlier this year, Microsoft undertook fewer performance-based layoffs in January. However, this recent 3% reduction marks its most significant workforce cut since early 2023. Other tech firms have also trimmed their workforces by around 10,000 jobs, equivalent to nearly 5%, and are scaling back on growth initiated during the pandemic.

This latest round of layoffs follows Microsoft’s recent announcement of excellent sales and profits that exceeded Wall Street projections for the period from January 3rd to March. The company has consistently outperformed revenue expectations for the past four quarters.

In an earnings call in April, Amy Hood, the company’s chief financial officer, stated that Microsoft is aiming to “build agile, high-performance teams by streamlining management layers.” She also noted that revenues in March were 2% higher than the previous year, reflecting a slight decrease compared to late last year.