Microsoft to lay off 9,000 employees in July

Microsoft announced this Wednesday that it will lay off nearly 9,000 employees, approximately 4% of its global workforce, with a total workforce of 228,000. This would be the third major wave of layoffs in 2025, following the 6,000 layoffs made in May and a smaller reduction in June.

Affected areas and divisions

The main areas facing cuts are sales, marketing, and the Xbox Gaming division, where Microsoft has canceled games like “Everwild” and laid off teams at studios like King, ZeniMax, and Rare.

The Barcelona-based subsidiary King will reduce its workforce by 10%, affecting around 200 employees.

Microsoft says these layoffs are part of a strategy to “reduce management layers” and improve organizational agility, aligning with its heavy investment in artificial intelligence infrastructure, which includes operational spending of up to $80 billion by 2025.

Financial impact

Despite the cuts, the company reported revenue of $70.069 billion in the last quarter, up 13% year-over-year, and net income of $25.824 billion, up 17.7% year-over-year. Shares fell just 0.1% year-over-year on Wall Street following the announcement.

The director of Xbox, Phil Spencer, mentioned that severance packages, medical leave, and support for internal relocation will be offered.

Analysts highlight this wave of layoffs as a reflection of a redefinition that prioritizes AI and a leaner corporate structure, although it affects many high-performing individuals.

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Sources:

• CNBC
• Infobae