Microsoft is reportedly on the verge of significant layoffs, potentially affecting thousands of employees, as the tech giant continues its cost-cutting efforts despite enjoying record financial success. According to a Bloomberg report, the layoffs could be announced as early as July 2025, following the company’s fourth-quarter and fiscal year-end results on June 30, 2025.
The sales teams are expected to be among the hardest hit, although redundancies may span multiple departments as Microsoft seeks to reduce employment-related expenses. This move comes on the heels of previous job cuts, with 6,000 positions eliminated in May 2025, representing about 3% of its 228,000 workforce, in an effort to streamline operations by removing middle management tiers. Additionally, 305 jobs were cut earlier this month, following 14,000 roles affected in 2023 and 2024.
In April 2025, Microsoft announced plans to outsource sales to smaller customers to third-party firms, signaling further changes ahead. Despite these widespread job losses, Microsoft’s financial performance remains robust. In the last quarter, the company reported a 13% revenue increase to $70.1 billion, maintaining its position as the world’s most valuable company with a market cap of $3.569 trillion.
CFO Amy Hood noted that while overall company headcount was up 2% year-over-year, it was slightly down quarter-over-quarter, indicating ongoing fluctuations. TechRadar Pro has requested confirmation from Microsoft regarding the planned layoffs but has yet to receive a response.
Microsoft employees are not alone in facing job uncertainty, as major competitors like Amazon and Google continue to adjust their workforce to optimize costs and output. As the tech industry continues to evolve, particularly with significant investments in AI, companies are under pressure to adapt their operations to remain competitive.
