Microsoft Boots 3% Of Staff In Latest Cull, Middle Managers First In Line

Microsoft is axing 3 percent of its global workforce - its biggest purge since chopping 10,000 jobs in early 2023 - this time to flatten its management structure.

Redmond confirmed the move to The Register, saying it's part of an effort to streamline operations by culling managers. With a headcount of around 228,000 as of the end of June, that 3 percent translates to nearly 7,000 people worldwide now headed for the exit.

"We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace," Microsoft said in an emailed statement. 

Redmond telegraphed the move last month. During Microsoft's Q3 earnings call in late April, CFO Amy Hood said the company was "reducing layers with fewer managers" as part of its push for agility and high-performing teams - a clear hint the axe was already being sharpened.

The latest layoffs mark the second round of job cuts at Microsoft this year, following a smaller wave in January that affected less than one percent of employees. That round included roles in the security division and the cuts targeting underperforming employees. The current layoffs appear to be Microsoft's largest since it culled more than 10,000 workers in 2023. 

• Googlers asked if they'd like to bury themselves next to Stadia, Chromecast, DropCam
• Hurrah! AI won't destroy developer or DBA jobs
• Tech titans assemble to decide which jobs AI should cut first
• Hands-on jobs to grow fastest, because AI can't touch them

While Microsoft didn't mention AI specifically, it did mention plans to eliminate busy work for its remaining employees by leveraging new technologies and capabilities. But other tech names cutting jobs in the first five months of 2025 have been increasingly claiming AI has played a role in eliminating workers. 

As we've reported, companies including Duolingo and Workday have both scrapped jobs due to AI's alleged ability to handle an increasing amount of human tasks. The IRS, which saw significant enforcement staff reductions under the Trump administration, has also acknowledged plans to use AI to supplement its tax collection capabilities.

Multiple studies have suggested that management roles - especially those at the mid level - are particularly vulnerable to automation. So it's not far-fetched to imagine Microsoft quietly attempting to swap a few carbon-based bosses for silicon ones. ®