Microsoft to lay off 9,000 workers in second major wave of cuts this year
The tech giant's total cuts will add up to about 15,000 employees this year, despite revenue surging
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More layoffs are coming to Microsoft this month.
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The tech company plans to cut as many as 9,000 employees, Bloomberg reported. Less than 4% of the company’s total workforce will be affected, a spokesperson told the publication.
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“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” the spokesperson said.
This is Microsoft’s second major round of layoffs this year. In May, the company laid off 6,000 people in roles that hit product and engineering teams particularly hard. In June, the company filed a WARN notice to cut 305 roles by August.
Microsoft’s fiscal year ends in June, so the company commonly restructures teams and announces major changes at this time. Bloomberg previously reported that the company was planning to cut thousands of sales jobs. Internal sources told the publication that they expected the cuts to come early this month.
At the end of June 2024, Microsoft had 228,000 full-time employees.
The moves come even as Microsoft revenue surges on the back of its AI and cloud software businesses. In the most recent quarter, the company reported $70.1 billion in revenue, up 13% year-over-year, and $25.8 billion in net income, up 18%.
Shares of Microsoft are up 17.6% this year.