- Microsoft reportedly set to lay off thousands in its new fiscal year
- Over 6,000 workers have already lost their jobs this calendar year
- Revenue is up, and Microsoft’s worth more than $3.5 trillion
Microsoft is preparing to cut thousands of jobs as part of its ongoing cost-cutting shakeup as the company continues to spend big on AI.
A new Bloomberg report says if confirmed, the layoffs could be announced in early July after the company’s fourth quarter and fiscal year end on June 30, 2025.
Sales teams could be the worst affected, but the redundancies could span other departments as Microsoft looks to reduce employment-related expenses.
Microsoft set for more layoffs
The company has already cut thousands of workers off in these post-pandemic years.
In May 2025, it cut 6,000 of its workers, equating to around 3% of its roughly 228,000 headcount, in an effort to reduce inefficiencies by removing middle management tiers. A further 305 workers lost their jobs this month, with 14,000 roles affected in 2023 and 2024.
In April 2025, Microsoft said it would outsource sales to small and mid-sized customers to third-party firms – an indication of the changes believed to be coming as soon as next month.
Despite widespread job losses, Microsoft continues to perform well financially. Last quarter, it reported a 13% increase in revenue to $70.1 billion. It currently holds the title of the world’s most valuable company, with a market cap of $3.569 trillion.
At the time, CFO Amy Hood stated that overall company headcount was 2% up year-over-year, but slightly down quarter-over-quarter, suggesting constant fluctuations.
TechRadar Pro has asked Microsoft to confirm plans to lay off workers after the current quarter draws to a close, but we did not receive an immediate response.
While highly disappointing for the company’s workers, Microsoft employees aren’t alone in facing job uncertainty. Key rivals like Amazon and Google have also been making regular adjustments to their headcounts to optimize costs and output.
