Microsoft Lays Off 9,000 Employees In Global Restructuring To Sharpen AI And Cloud Focus

Inbizzy, Redmond, WA – Microsoft has announced the layoff of approximately 9,000 employees globally, representing around 4% of its total workforce. The move is part of a comprehensive restructuring strategy aimed at streamlining the organization and reallocating resources toward key growth areas such as artificial intelligence (AI) and cloud services.

The company stated that the layoffs are intended to reduce layers of management, improve operational efficiency, and align the internal structure with long-term technology transformation goals. This marks the second major round of layoffs in 2025, following a previous reduction of 6,000 roles in May.

Refocusing on AI Infrastructure and Capital Efficiency

Microsoft is currently investing heavily in AI and cloud infrastructure, with capital expenditures expected to exceed USD 80 billion in fiscal year 2025. The workforce adjustment is part of the company’s effort to remain agile while ensuring effective capital deployment in its core innovation sectors.

The restructuring affects a wide range of global divisions, including sales, marketing, and several gaming studios under Xbox, King (Candy Crush), Raven Software, and ZeniMax/Bethesda. The Santa Monica-based studio The Initiative has also reportedly been closed as part of this consolidation.

Part of a Broader Industry Trend

Microsoft’s move reflects a broader trend across the tech industry, where major companies are realigning their workforce structures to adapt to the AI era. Since 2024, firms like Amazon, Meta, and Google have also undertaken similar steps to strengthen their focus on efficiency and next-generation innovation.

Despite the job cuts, Microsoft remains financially strong. In its March 2025 quarterly report, the company reported USD 70 billion in revenue and USD 26 billion in net income. As of June 2025, Microsoft’s market capitalization surpassed USD 3 trillion, solidifying its position as one of the world’s largest technology companies.

Support for Affected Employees

Microsoft has affirmed that affected employees will receive severance packages, extended healthcare benefits, and access to career transition assistance. The company emphasized its commitment to conducting the process with respect and transparency.

While difficult, the restructuring is presented as a strategic measure to ensure Microsoft’s continued leadership in the global technology space, with renewed emphasis on AI, cloud computing, and cybersecurity.