On 2/7, Microsoft announced it would lay off approximately 9,000 employees. CNBC sources indicate this number represents nearly 4% of its global workforce. The cuts affect employees across various departments, regions, and experience levels. Similar to the May layoffs, Microsoft is again focusing on middle management.
The announcement came on the second day of Microsoft's 2026 fiscal year. The software giant typically unveils restructuring plans at the start of its new fiscal year.
"We will continue to make the necessary organizational changes to best position the company and support our teams to succeed in this dynamic market," a Microsoft spokesperson said in an email.
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Microsoft logo at the MWC exhibition in February 2023. Photo: Luu Quy |
Microsoft logo at the MWC exhibition in February 2023. Photo: Luu Quy
This year, Microsoft has conducted several rounds of layoffs. In January, they reduced their workforce by nearly 1% based on performance. In May, Microsoft laid off an additional 6,000 employees, and last month, at least 300 more jobs were cut. As of June 2024, the company had 228,000 employees.
Microsoft's largest layoff reportedly occurred in 2014, affecting 18,000 people. This followed the company's acquisition of Nokia's devices and services business.
In the quarter ending in March, Microsoft reported $26 billion in net profit on $70 billion in revenue. These figures significantly exceeded investor expectations. According to FactSet data, the software company is currently one of the most profitable companies in the S&P 500 index.
Microsoft's leadership projects a revenue increase of approximately 14% in the second quarter compared to the same period last year, driven by the Azure cloud computing platform and business productivity software. Microsoft's stock price remained relatively flat during trading on 2/7.
Before Microsoft, several other software companies also announced workforce reductions. Autodesk cut 1,350 employees. Chegg reduced its staff by 250, equivalent to 22% of its workforce. CrowdStrike eliminated 500 jobs, representing 5% of its employees.
Ha Thu (via CNBC, Reuters)
