Key Takeaways
- Microsoft is laying off about 3% of its employees around the globe, CNBC reported on Tuesday.
- That could reach up to 7,000 employees, as Microsoft said in mid-2024 that it had about 228,000 full-time employees.
- The tech giant’s CFO said in last month’s earnings call that the company is focused on “increasing our agility by reducing layers with fewer managers.”
Microsoft (MSFT) is looking to cut about 3% of its global workforce, according to a report from CNBC on Tuesday.
The job cuts will take place across Microsoft’s teams and locations across the globe, CNBC reported, and will have an objective of reducing the technology company’s levels of managers, among other goals.
In its latest annual report filed last summer, Microsoft said it had roughly 228,000 full-time employees, meaning this round of job cuts could approach 7,000 workers. That would likely be the largest layoff since Microsoft cut 10,000 jobs in 2023 as the tech industry at large was shedding jobs into last year.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said Tuesday in a statement to Investopedia.
CFO Confirms Plan To Reduce Managers
CFO Amy Hood said in last month’s earnings call that the company remains focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers,” and said company headcount at the end of March was up 2% year-over-year, but down slightly from the previous quarter.
The news follows a similar move from CrowdStrike Holdings (CRWD) last week, when the cybersecurity firm said it would cut about 500 jobs, or 5% of its total headcount.
Microsoft’s shares were up slightly in recent trading Tuesday afternoon, and are up about 6.5% since the start of the year, closing at their highest point in 2025 on Monday.
UPDATE—This article has been updated with the latest share price information and with a statement from Microsoft.