Microsoft has announced around 4,800 job cuts, affecting approximately 2.1% of its global workforce, as part of a broader organisational restructuring. The announcement came through an internal message from Chief People Officer Amy Coleman, who said the changes are aimed at aligning the company’s workforce and investments with evolving business priorities.
The layoffs are concentrated mainly in Microsoft’s Commercial and Xbox divisions, while some engineering teams will also be reorganised. Coleman thanked affected employees for their contributions and acknowledged the impact of the decision on thousands of workers.
Microsoft Says AI Is Changing Work, But Not Replacing These Roles
Microsoft said the current layoffs are not the result of AI replacing employees. Instead, the company said the restructuring reflects changes in customer needs, technology adoption and the way work is organised across the business.
Coleman noted that AI is automating some routine tasks, making continuous learning and upskilling increasingly important for employees. She said Microsoft is reshaping teams and priorities to better support customers as AI adoption accelerates across industries.
Microsoft Redeployed Over 4,000 Employees Before Layoffs
Before reducing headcount, Microsoft said it redeployed more than 4,000 employees into new roles over the past year, including 500 during the current month. More than 30% of eligible employees also opted into the company’s recent voluntary retirement programme.
The company will also move four gaming studios under new management to preserve their intellectual property and ongoing projects. Employees affected by the layoffs will receive financial support and career transition resources.
Coleman added that Microsoft expects further organisational changes as the company continues adapting to shifts in the technology industry, while maintaining investments in employee skills and future growth areas.
FAQs
- Why is Microsoft cutting 4,800 jobs?
Microsoft said the layoffs are part of a broader business restructuring aimed at aligning resources with changing customer needs and long-term business priorities.
- Are Microsoft’s layoffs being caused by AI?
No. Microsoft said the current job cuts are not being made to replace employees with AI, although the company acknowledged that AI is changing how work is performed.
- Which Microsoft divisions are most affected by the layoffs?
The layoffs are mainly impacting Microsoft’s Commercial and Xbox divisions, along with structural changes across some engineering teams.
- How many employees are affected by Microsoft’s latest layoffs?
Around 4,800 employees, representing approximately 2.1% of Microsoft’s global workforce, are affected by the restructuring.
