Microsoft to cut 3% of workforce amid restructuring effort - CNBC

Investing.com -- Microsoft Corporation (NASDAQ:MSFT) will lay off approximately 3% of its global workforce as part of a broader organizational realignment, the company confirmed Tuesday. The cuts will affect employees across all levels, teams, and regions, according to a report by CNBC.

With 228,000 employees worldwide as of June, the move is expected to impact thousands of workers. It marks Microsoft’s largest job reduction since it cut 10,000 roles in 2023.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson told CNBC.

The company clarified that the layoffs are not tied to employee performance. A key objective, according to the spokesperson, is to reduce management layers and streamline operations.

Microsoft has been reshaping its workforce to align with evolving business priorities, including continued investments in cloud infrastructure and artificial intelligence.

The layoffs follow a wave of tech-sector job reductions in recent months, as large companies look to boost efficiency following years of expansion.

Microsoft stock has fallen 0.4% following the announcement, attributable to a general market rebalance after yesterday’s trading surge.