Microsoft has announced a significant round of layoffs, slashing approximately 9,000 jobs, or just under 4% of its global workforce of 228,000, as it streamlines operations to fuel its $80 billion AI investment.
The cuts span teams, geographies, and experience levels, with a focus on reducing management layers to boost agility. This is Microsoft’s largest staff reduction since 2023, when it eliminated 10,000 positions, and follows earlier 2025 cuts of 6,000 in May and 300 in June, signaling a broader shift in priorities.
The layoffs, effective from the start of Microsoft’s 2026 fiscal year, hit divisions like Xbox, LinkedIn, and international offices, with about 2,000 roles cut in Washington state alone, including 1,510 in-office and 475 remote workers. CEO Satya Nadella, speaking at a town hall, framed the move as…