Redmond, Washington: Microsoft has announced plans to lay off nearly 3% of its global workforce, amounting to approximately 6,000 employees, in a move aimed at streamlining operations and reducing management layers.

The tech giant, which employed 228,000 full-time staff as of June 2024, said the layoffs will span across levels and geographies but will primarily target management roles. Layoff notices were sent on Tuesday.

The latest round of cuts marks Microsoft’s most significant job reduction since early 2023, when the company slashed 10,000 positions, or about 5% of its staff, as part of a broader tech industry trend of scaling back post-pandemic expansions. A smaller round of performance-based layoffs also took place in January this year.

The announcement comes despite strong financial results in the January–March quarter, with Microsoft reporting better-than-expected sales and profits—an encouraging signal amid broader uncertainty in the tech sector and the U.S. economy.

On the company’s April earnings call, Microsoft CFO Amy Hood emphasised the need for leaner structures. “We are focused on building high-performing teams and increasing our agility by reducing layers with fewer managers,” she said.

Hood also noted that Microsoft’s overall headcount in March was 2% higher year-on-year, though slightly down from the end of 2024.

Based in Redmond, Washington, Microsoft continues to recalibrate its workforce as it aligns operations with evolving market demands and internal restructuring goals. AP