Microsoft Announces Layoffs: About 9,000 Jobs Affected in Latest Cost-Cutting Move

 

What’s Happening

• On July 2, Microsoft announced plans to eliminate around 9,000 jobs, less than 4% of its ~228,000 global workforce.

• This is its second major layoff wave this year—after ~6,000 jobs in May and 300 in June.

• These cuts impact teams around the world, especially sales, gaming/Xbox, and middle management layers .

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Why It’s Happening

• Microsoft is streamlining operations and cutting management levels to be more agile and efficient.

• The company is also making room to invest heavily in AI and cloud infrastructure, with projected capital spending of $80 billion for fiscal year 2025.

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Impact on Xbox & Gaming

• Xbox boss Phil Spencer confirmed that some studios and projects are being reduced or closed.

• Roughly half the layoffs in gaming divisions hit studios like Zen Imax, Blizzard, Turn 10, Rare, and canceled key titles—including Ever wild and reviving Perfect Dark.

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Support for Affected Workers

• Microsoft offers severance, extended health benefits, and internal job matching for impacted staff .

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Company Performance

• Despite the layoffs, Microsoft continues to post strong results—about $70 billion in revenue and $25–26 billion net income, with stock hitting all-time highs and around 17% YTD gain .

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✅ Quick Summary Table

Item	Details
Total jobs cut	~9,000 (≈4%)
Previous layoffs	~6,000 in May; 300 in June; <1% in January
Main affected areas	Sales, Xbox/gaming, middle management
Reason	Streamline operations, reduce management, invest in AI
Support offered	Severance, health benefits, internal job placement
Company health	$70B revenue, $25–26B profit, stock +17% YTD

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💡 Takeaway

Microsoft's decision reflects a strategic shift toward a leaner, more agile structure with heavier investment in AI and cloud. While this may boost future focus and efficiency, it also marks significant change—especially for those in Xbox and management roles.