Microsoft lays off 9,000 employees, or less than four percent of its workforce.
Microsoft will lay off 9,000 employees, which amounts to less than four percent of its global workforce. The tech giant announced this on the second day of its fiscal year 2026.
Fewer Management Layers
According to a source from CNBC, the layoffs are intended to reduce management layers between individual employees and top executives. Other companies are also laying off significantly, but that is mainly due to the rise of AI. Salesforce and Workday also downsized this year. Klarna has stopped hiring new employees thanks to AI. HP has also cut 2,000 jobs this year due to cost-cutting measures.
Ongoing Layoffs
This is not the first layoff round Microsoft has implemented this calendar year, CNBC writes. In January, less than one percent was laid off, and in June and May, more than 6,000 in total. Nevertheless, the company reported a net profit of almost 26 billion dollars on a revenue of 70 billion dollars for the March quarter. Whether more layoffs will follow this year remains to be seen.
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