On Tuesday, May 13, 2025, Microsoft initiated its largest layoffs in over two years, cutting approximately 6,000 workers—nearly 3% of its global workforce—as the tech giant ramps up its investment in artificial intelligence (AI). The layoffs, which span across all levels and geographies, are part of what the company calls “organizational changes necessary to best position the company for success in a dynamic marketplace.”
Redmond Impact: Washington state, Microsoft’s home base, bore the brunt of the cuts, with 1,985 workers laid off from its Redmond headquarters, primarily affecting software engineering and product management roles.
How amid Microsoft layoffs come?
The layoffs come amid Microsoft’s $80 billion investment in AI infrastructure for the fiscal year ending June 2025, aimed at building data centers and advancing its AI technology. Despite reporting strong sales and profits for the January-March quarter, the company is focusing on streamlining operations, particularly by reducing management layers. The cuts also affect divisions like Xbox and LinkedIn, reflecting a broader industry trend of tech layoffs in 2025 as companies pivot toward AI and cost efficiency. Affected employees are set to officially depart by July 2025.
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