Microsoft cuts 9K jobs in 4th round of layoffs this year
The 50-year-old company said on Wednesday that its reduction of as many as 9,100 employees, or about 4% of its workforce, will affect less than 4% of workers across different teams, worldwide locations and experience levels.
"We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace," a Microsoft spokesperson told CNBC in a statement.
As of June last year, the Redmond, Wash., conglomerate employed about 228,000 people after 10,000 were let go in 2023.
The news of the latest round of staff reductions came on the second day of the company's 2026 fiscal year. This fresh round of layoffs also comes on top of Microsoft's most recent round of 300 job cuts in June after 6,000 in its global workforce were slashed in May, with an earlier round in January.
However, the company reported nearly $26 billion in net income for the March quarter on revenue of $70 billion in numbers that beat even Wall Street projections.
According to FactSet, it kept Microsoft ranked as one of the most profitable entities on the S&P 500 index.
The company has been seeking to reduce its headcount and layers of management in the way of its top execs and individual employees, but this slew of cuts were hit hard in Microsoft's Xbox gaming division.
"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 business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness," Phil Spencer, Microsoft's CEO of gaming, wrote in a memo Wednesday to division workers.
Meanwhile, Microsoft shares were down roughly 0.6% at the start of morning Wall Street trading.
Spencer noted in his memo that the changes arrived at a time "when we have more players, games and gaming hours than ever before," but added that the cuts were "not a reflection of the talent, creativity and dedication of the people involved."
"We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business," he added.
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