Microsoft is cutting approximately 9,000 jobs worldwide, the company’s largest round of layoffs since 2023, as it intensifies its focus on artificial intelligence and streamlines operations across multiple divisions.
The reductions, affecting nearly 4% of Microsoft’s global workforce, were announced internally this week. Impacted departments include sales, marketing, middle management, and gaming units such as Xbox and its subsidiaries Activision Blizzard, King, and ZeniMax.
This marks Microsoft’s third wave of layoffs in 2025, following about 6,000 job cuts in May and further reductions in June. The company described the move as part of “organizational changes necessary to best position the company and teams for success in a dynamic and competitive market.”
Phil Spencer, CEO of Microsoft Gaming, confirmed the layoffs in a memo to staff, stating the company remains committed to aligning teams with long-term strategic goals.
Despite the layoffs, Microsoft’s stock price held steady following the announcement. As of July 2025, the company employs approximately 228,000 people globally.
