Most likely because some person/s bonuses are tied to cost cutting or "productivity" targets that can be achieved through the lay-offs. Answer from aidos_86 on reddit.com
CNBC
cnbc.com › 2025 › 07 › 02 › microsoft-laying-off-about-9000-employees-in-latest-round-of-cuts.html
Microsoft laying off about 9,000 employees in latest round of cuts
July 2, 2025 - Microsoft will cut less than 4% of its global workforce across teams, role types and geographies. The software company also announced layoffs in May affecting around 6,000 people. Executives are still trying to reduce management layers.
Reddit
reddit.com › r/artificialinteligence › what is the real explanation behind 15,000 layoffs at microsoft?
r/ArtificialInteligence on Reddit: What is the real explanation behind 15,000 layoffs at Microsoft?
July 6, 2025 -
I need help understanding this article on Inc.
https://www.inc.com/jason-aten/microsofts-xbox-ceo-just-explained-why-the-company-is-laying-off-9000-people-its-not-great/91209841
Between May and now Microsoft laid off 15,000 employees, stating, mainly, that the focus now is on AI. Some skeptics I’ve been talking to are telling me that this is just an excuse, that the layoffs are simply Microsoft hiding other reasons behind “AI First”. Can this be true? Can Microsoft be, say, having revenue/financial problems and is trying to disguise those behind the “AI First” discourse?
Are they outsourcing heavily? Or is it true that AI is taking over those 15,000 jobs? The Xbox business must demand a lot and a lot of programming (as must also be the case with most of Microsoft businesses. Are those programming and software design/engineering jobs being taken over by AI?
What I can’t fathom is the possibility that there were 15,000 redundant jobs at the company and that they are now directing the money for those paychecks to pay for AI infrastructure and won’t feel the loss of thee productivity those 15,00 jobs brought to the table unless someone (or something) else is doing it.
Any Microsoft people here can explain, please?
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Most likely because some person/s bonuses are tied to cost cutting or "productivity" targets that can be achieved through the lay-offs.
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https://pivot-to-ai.com/2025/07/03/microsoft-lays-off-the-staff-who-make-the-money-to-fund-ai-that-doesnt/ Nadella is a true believer, and he is also wrong. They definitely aren't having revenue problems, but they want to throw so much money at AI that they have to make these layoffs to pay for building their Azure server farms. It's not that they think AI can replace those employees. It's that they think AI is going to make them so much money, it's worth cannibalising other parts of their business for in order to scale up the infrastructure as fast as possible.
Videos
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BBC
bbc.com › news › articles › cdxl0w1w394o
Microsoft to cut up to 9,000 jobs as it invests in AI
July 3, 2025 - Microsoft has confirmed that it will lay off as many as 9,000 workers, in the technology giant's latest wave of job cuts this year.
Danielsada
danielsada.tech › blog › microsoft-pact
The broken Microsoft Pact: Layoffs and Performance Management | Daniel Sada Caraveo | Developer Productivity & Culture
To put this in context: that’s roughly 13% of Microsoft’s workforce, and while the entire tech industry saw significant layoffs (Meta, Google, Amazon all made major cuts), Microsoft’s situation stands out because of their historical commitment ...
The Seattle Times
seattletimes.com › business › microsoft › microsoft-to-lay-off-as-many-as-9000-employees-in-latest-round
Microsoft | The Seattle Times
Read all the latest news about Microsoft from The Seattle Times business staff.
NetPC
techrights.org › n › 2025 › 12 › 20 › More_Microsoft_Layoffs_Coming_Soon.shtml
Techrights — More Microsoft Layoffs Coming Soon
In January of that year it admitted to the media it was (or would be) laying off 10,000 or 11,000 workers. Of course, as usual, the real number was higher. This year a lot of the media keeps talking about 15,000 Microsoft layoffs, even if so far in 2025 Microsoft has laid off over 30,000 people, ...
USA Today
usatoday.com › story › money › 2025 › 07 › 02 › microsoft-layoffs-july-2025 › 84444846007
Microsoft's recent round of layoffs to impact about 4% of its workforce
July 2, 2025 - The tech giant intends to reduce organizational layers by having fewer managers and streamlining its products, procedures and roles, Microsoft said, according to Reuters. The layoffs, which will affect employees across different teams, geographies and levels of experience, come on the second ...
PBS NewsHour
pbs.org › newshour › economy › microsofts-largest-layoff-in-years-hits-xbox-gaming-sales-and-other-divisions
Microsoft’s largest layoff in years hits Xbox gaming, sales and other divisions | PBS News
July 2, 2025 - Microsoft says it is laying off about 9,000 workers, its second mass layoff in months and its largest in more than two years.
CNBC
cnbc.com › 2025 › 05 › 13 › microsoft-is-cutting-3percent-of-workers-across-the-software-company.html
Microsoft laying off about 6,000 people, or 3% of its workforce
May 13, 2025 - Microsoft, which is cutting 3% of its headcount, had 228,000 employees as of last June. The maker of Windows and Word is aiming to reduce management layers.
NYTimes
nytimes.com › 2025 › 07 › 02 › technology › microsoft-layoffs-ai.html
Microsoft to Lay Off About 9,000 Employees - The New York Times
July 2, 2025 - Microsoft said on Wednesday that it would lay off roughly 4 percent of its work force, or about 9,000 people, in another indication of the tightening job market at big technology companies.
MyNorthwest
mynorthwest.com › local › microsoft-layoffs-redmond › 4119076
Microsoft confirms 40 more layoffs at Redmond campus
August 5, 2025 - The Monday layoff filing is scheduled to take effect on October 3, 2025. Microsoft has submitted approximately 15,000 layoffs nationwide this year.
Times Now
timesnownews.com › business › industry
Layoffs In 2025 Cross 50,000: How Amazon, IBM, & Microsoft Is Reshaping Its Workforce Using AI | Industry - Times Now
5 hours ago - Microsoft carried out multiple rounds of layoffs in 2025, cutting an estimated 15,000 roles. The restructuring coincided with a stronger internal push to integrate AI into everyday work.
Windows Central
windowscentral.com › microsoft
Microsoft's layoffs to top 9,000 people, impacting around 4% of the firm's entire workforce — total 2025 layoffs now top 15,300 people
July 2, 2025 - Microsoft has already had multiple ... "restructuring." As such, the total number of layoffs in this calendar year tallies around 15,300 people, or around 6.7% of its total global workforce....
GeekWire
geekwire.com › home › microsoft › microsoft cuts another 4% of its workforce, about 9,000 jobs, in continued efficiency push
Microsoft cuts another 4% of its workforce, about 9,000 jobs, in continued efficiency push – GeekWire
July 2, 2025 - Microsoft is cutting 9,000 more jobs across the company, following earlier layoffs, amid major investments in AI and cloud infrastructure.
The Verge
theverge.com › news › gaming › tech
Microsoft is laying off as many as 9,000 employees | The Verge
July 2, 2025 - Microsoft’s Forza Motorsport ... major layoffs come less than two months after Microsoft announced it was cutting more than 6,000 employees, followed by an additional 305 reductions in early June....
The Verge
theverge.com › news › entertainment › gaming
Microsoft is laying off more than 6,000 employees | The Verge
May 13, 2025 - Microsoft is laying off at least 6,000 employees across its workforce. The cuts will impact a variety of roles and levels across the software maker.
FinalRoundAI
finalroundai.com › blog › microsoft-plans-july-layoffs-2025
Microsoft Layoffs: Over 1,000 Jobs to Be Cut Next Week, Including Xbox Staff
In May, the company laid off around 6,000 employees, primarily from product and engineering teams as part of a broader internal restructuring. The upcoming layoffs are expected to impact roles in sales and support functions, reflecting Microsoft’s ...
AP News
apnews.com › article › microsoft-layoffs-d1f2de54ebad6f099deac8fbd3375835
Microsoft lays off about 3% of its workforce in what one executive calls a 'day with a lot of tears' | AP News
May 13, 2025 - Hard hit was the tech giant’s home state of Washington, where Microsoft informed state officials it was cutting 1,985 workers tied to its Redmond headquarters, many of them in software engineering and product management roles.
NetPC
techrights.org › wiki › Microsoft_-_Layoffs
Microsoft - Layoffs
Fifth Round of Microsoft Layoffs in Less Than 2 Months: Another Thousand Job Cuts (6% of LinkedIn Workforce) Microsoft is Defrauding Its Shareholders While Laying Off About 5,000 Workers · Microsoft Lays Off Many More Workers in the Advertising Division/s and Terminates Products While the ...
Business Insider
businessinsider.com › business insider › careers › tech › the list of major companies laying off staff this year includes verizon, ibm, amazon, starbucks, american airlines, and more
The Layoffs List of 2025: Verizon, Meta, Amazon, and More - Business Insider
6 days ago - A Microsoft spokesperson declined to say how many jobs were cut on the affected teams. ... Another round of layoffs in July will affect less than 4% of its total workforce, or roughly 9,000 employees, based on its head count of around 220,000.