By Erewunmi Peace

In a significant move that has sent ripples across the global tech industry, Microsoft has announced a new round of layoffs affecting approximately 9,000 employees, marking one of its largest workforce reductions in recent years.

The job cuts—representing about 4% of Microsoft’s global workforce—come as part of a strategic effort to streamline operations and accelerate the company’s pivot toward artificial intelligence (AI) and cloud-based solutions.

Divisions Affected

The layoffs span multiple divisions, including the sales department, which is undergoing a transformation. Microsoft plans to replace traditional sales roles with more technical positions such as solution engineers, aimed at enhancing its enterprise AI offerings.

The company’s gaming arm, Xbox, is also bearing the brunt. Several studios—including Raven Software, Turn 10, and King (of Candy Crush fame)—have been impacted. The cuts have reportedly led to the cancellation of anticipated titles, including Perfect Dark and Everwild, and the closure of The Initiative, a high-profile studio.

Why It Matters

Microsoft says the restructuring is not due to financial instability. On the contrary, the tech giant reported a strong fiscal quarter, with $70 billion in revenue and $26 billion in net profit. However, CEO Satya Nadella emphasized the need to “realign teams, remove layers of middle management, and reinvest in AI-first infrastructure.”

This latest layoff follows earlier cuts in May (approximately 6,000 jobs) and June (around 300), bringing the total number of layoffs in 2025 to over 15,000.

Looking Ahead

While the move is intended to future-proof Microsoft’s business in a rapidly evolving tech landscape, it raises concerns about job security across the industry, especially as other tech giants also tighten their workforce.

Microsoft has not yet disclosed the exact geographic breakdown of the layoffs, but reports indicate that the cuts are global in scope, affecting both domestic and international offices.