Microsoft is reportedly firing 9000 employees which is roughly 4 % of Microsoft’s 228,000‑strong global workforce. The latest round of cuts follow the massive layoff in May when around 6,000 jobs were slashed. In the past few years, the tech giant has been riding a dramatic wave of workforce reductions tied to its aggressive pivot towards artificial intelligence (AI). If you add up the numbers, Microsoft has terminated more employees over the past three years than the entire population of an island nation near New Zealand.
During January 2023, the company initiated a major lay‑off affecting 10,000 positions. Additional smaller cutbacks—1,000 in summer 2024 (Azure) and 650 in late 2024 (Xbox)—bring the cumulative total to more than 27,000 roles lost since 2023. By comparison, an island nation comprising nine islands in the Pacific Ocean, Tuvalu, had an estimated population of just 9,500 in 2025. Microsoft’s job cuts therefore exceed two and a half times the size of Tuvalu’s entire population.
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Why is Microsoft shedding so many roles?
The company cites its plan to streamline middle‑management layers, cut redundant positions, and redistribute resources towards its ambitious AI investments, particularly in cloud infrastructure, data centres, and Copilot deployments. CEO Satya Nadella and CFO Amy Hood emphasised the need for “operational agility and high‑performing teams” as the tech giant positions itself for long‑term growth.
Despite the scale of the cuts, the financial outlook remains robust. Microsoft reported nearly $70 billion revenue and $26 billion net income in its latest quarter, buoyed by an anticipated 14 % year‑on‑year growth in Azure and software subscriptions.
Human cost remains steep. Teams across engineering, gaming (Candy Crush’s King, Raven Software), sales, support, and management have felt immediate impact, with around 15,000 roles lost in 2025 alone . Although Microsoft offers internal redeployment opportunities, many affected staff face uncertain futures amid the company’s transformative shift.
By the numbers:
-10,000 jobs cut in January 2023
-6,000 jobs in May 2025
-9,000 jobs in July 2025
-Plus 1,650 across mid-2024
-27,000+ total
In essence, Microsoft has shed more positions in three years than there are people in Tuvalu, spotlighting the stark human dimension of its quest to dominate the AI landscape.
