Microsoft will cut less than 4% of its global workforce across teams, role types and geographies. The software company also announced layoffs in May affecting around 6,000 people.
Executives are still trying to reduce management layers.
In this articleMSFT your favorite stocksCREATE FREE ACCOUNTMicrosoft CEO Satya Nadella speaks at Microsoft Build AI Day in Jakarta, Indonesia, on April 30, 2024.
Adek Berry | AFP | Getty ImagesMicrosoft said Wednesday that it will lay off 9,000 employees.
The move will affect less than 4% of its global workforce across different teams, geographies and levels of experience, a person familiar with the matter told CNBC.
The announcement comes on the second day of Microsoft's 2026 fiscal year. Executives at the Redmond, Washington-based company typically unveil reorganizations at the time of the new fiscal year.
"We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace," a Microsoft spokesperson said in an.
Microsoft has held several rounds of layoffs already this calendar year. In January, it cut less than 1% of headcount based on performance.
The 50-year-old software company slashed more than 6,000 jobs in May and then at least 300 more in June. As of June 2024 it employed 228,000 people. In 2023, it laid off 10,000.
Perhaps the largest culling of Microsoft workers came in 2014, when the company eliminated 18,000 after acquiring Nokia's devices and services.
As was the case with the May layoffs, Microsoft is looking to reduce the number of layers of managers that stand between individual contributors and top executives, said the person who asked not to be named while discussing internal matters.
"To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the and Microsoft's lead in removing layers of management to increase agility and effectiveness," Phil Spencer, Microsoft's CEO of gaming, wrote in a Wednesday memo to employees in that division.
Microsoft reported nearly $26 billion in net income on $70 billion in revenue for the March quarter.
The numbers were well ahead of Wall Street's consensus, keeping Microsoft ranked as one of the most fitable companies in the S&P 500 index, according to data compiled by FactSet.
Executives called for 14% year-over-year revenue growth in the June quarter, thanks to expected expansion in Azure cloud services and corporate ductivity software subscriptions.
Microsoft stock closed at a record high of $497. 45 per on June 26. It closed down 0. 2% on Wednesday, while the S&P 500 gained 0.
Autodesk, Chegg and CrowdStrike are among the other software viders that have slimmed down in 2025. Earlier on Wednesday, payroll cessing company ADP said the U.
Private sector lost 33,000 jobs in June. Economists polled by Dow Jones had predicted an increase of 100,000.
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