Microsoft’s Planned Workforce Reductions: What to Expect
In May 2025, Microsoft made headlines by laying off approximately 6, 000 employees, representing about 3% of its workforce. The tech giant stated that these layoffs were necessary for implementing crucial organizational changes within an evolving marketplace.
Recent reports suggest that Microsoft may be poised to announce further layoffs, potentially impacting thousands of workers next month. According to Bloomberg, which cited anonymous sources, this upcoming reduction will primarily target the sales teams. However, it is noted that other departments may also face cuts, although the timeline for this announcement could still fluctuate.
Strategic Shift Towards Third-Party Sales
This anticipated move aligns with Microsoft’s earlier announcements. Back in April 2025, the company indicated its strategy to enhance sales by partnering with third-party firms, particularly to market its software to small and medium-sized enterprises. While the exact number of affected employees remains uncertain, even minor layoffs could significantly disrupt the careers of thousands within the organization.
Past Layoffs and Current Trends
The previous wave of layoffs in May predominantly affected engineering and product teams, following an earlier reduction of 10, 000 jobs in January 2023, which accounted for 5% of the total workforce at that time. Notably, teams specializing in Mixed Reality (MR) faced considerable cutbacks during these layoffs.
As these developments unfold, it is noteworthy that the anticipated announcement may occur shortly after Microsoft concludes its fiscal year at the end of June 2025. Stakeholders will be keenly observing the forthcoming financial reports to gauge the human cost associated with Microsoft’s reported billions in quarterly revenue.
For ongoing updates, visit Bloomberg (paywall).
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