Microsoft intends to lay off six thousand employees despite a series of profitable quarters

Microsoft has announced that it is laying off nearly 3% of its entire workforce. The technology giant did not disclose the total number of people laid off, but it will be about 6,000, writes UNN with reference to The Guardian.

Details

As of last June, when the annual headcount was last reported, Microsoft employed 228,000 full-time employees. About 55% of these employees were in the United States.

Microsoft, based in Redmond, Washington, said the layoffs will be across all levels and geographies, but focused on reducing management levels. The announcements were released on Tuesday.

We continue to implement organizational changes necessary to best position the company for success in a dynamic market

Microsoft announced a smaller round of performance-based layoffs in January. But the 3% reduction will be the company's largest recorded layoffs since early 2023, when the company cut 10,000 employees, nearly 5% of its workforce, joining other tech companies that were cutting back on their expansion during the pandemic.

The latest layoffs come just weeks after Microsoft reported strong sales and profits that beat Wall Street expectations for the quarter from January to March, which investors saw as a dose of relief in a turbulent time for the tech sector and the US economy. Microsoft has exceeded Wall Street's earnings forecasts for the past four quarters in a row.

Chief Financial Officer Amy Hood said on an April earnings call that the company is focused on "building high-performing teams and increasing our agility by reducing layers with fewer managers." She also noted that headcount in March was 2% higher than a year earlier and slightly lower compared to the end of last year.

Addition

Microsoft announced the end of support for the Remote Desktop application for Windows on May 27, 2025. Users will be offered to switch to a new Windows application with advanced features for cloud PCs.