Microsoft is reportedly cutting about 3% of its global workforce, according to multiple sources including CNBC and The Verge. The tech giant employs approximately 228,000 workers worldwide, with 126,000 in the United States as of June 2024. This reduction could leave over 6,000 employees without jobs.
Background on Microsoft’s Workforce
Microsoft reported employing about 50,000 people in Washington state in 2024. The Seattle Times cited a filing with the Employment Security Department, reporting that 1,985 employees in Washington were laid off on May 13. CNBC noted that the cuts would affect “employees across all levels, teams and geographies.”
Recent Layoffs in Tech Industry
This isn’t Microsoft’s first major workforce reduction. The company cut 10,000 jobs in 2023, and approximately 1,900 employees were let go from its Activision Blizzard and Xbox divisions in 2024. Other tech industry leaders like Amazon, Meta, and Alphabet have also implemented significant layoffs in recent years.
Economic Context
Many tech companies experienced rapid expansion during the COVID-19 pandemic, only to reverse course in 2022 as inflation and interest rates rose. Economists have suggested to USA TODAY that these layoffs may indicate a shift in consumer habits since the pandemic began.
“The waves of layoffs across tech may indicate that consumer habits have shifted since the pandemic’s start,” several economists told USA TODAY earlier this year.
Microsoft is based in Redmond, Washington. The company’s decision follows a trend of major tech companies restructuring their workforces in response to changing economic conditions.
