Microsoft to Cut 3% of Workforce While Reducing Management Layers

Group 1 - Microsoft is laying off approximately 6,000 employees, which is about 3% of its workforce, to streamline management layers [1] - This layoff is the largest since 2023, when the company cut 10,000 roles, and follows earlier performance-based cuts in January [2] - The layoffs will impact employees across all levels, teams, and geographies [1] Group 2 - Microsoft plans to continue investing in capital expenditures through fiscal year 2026, driven by revenue gains from cloud and AI offerings [2] - CFO Amy Hood emphasized that investments and focused execution will help the company lead in cloud and AI opportunities [3] Group 3 - In January 2023, Microsoft announced layoffs of 10,000 workers, about 5% of its workforce, due to significant changes in customer spending [5] - The company had previously cut about 1% of its staff in 2022 as part of broader cost-reduction efforts, including a hiring freeze and reduced spending on travel and events [5] - The consulting division implemented a hiring pause and instructed employees to minimize travel and cut marketing expenses by 35% [4]