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 Layoffs: ~9000 Employees in Latest Cuts
July 2, 2025 - In January, it cut less than 1% of headcount based on performance. The 50-year-old software company slashed more than 6,000 jobs in May and then at least 300 more in June. As of June 2024 it employed 228,000 people.
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?
Top answer 1 of 119
446
Most likely because some person/s bonuses are tied to cost cutting or "productivity" targets that can be achieved through the lay-offs.
2 of 119
191
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.
The primary causes of Microsoft layoffs
IMO the key reason is culture change being driven at the top. Satya has been hiring a bunch of external talent who have brought in their culture. Jay Parikh from Meta, the COO from Walmart, Charlie Bell from Amazon, Mustafa, Kevin Scott and the LinkedIn folks. It's just Scott and Rajesh in the SLT that are MSFT long-timers, no other internal promos. So Satya is counseled by people with different styles, often a very retail-like culture and that's leading to a bunch of good cultural attributes falling by the wayside when push comes to shove More on reddit.com
167
553
July 10, 2025Major Tech Layoffs of 2024: A Detailed Overview of Job Cuts Across the Industry : Layoffs
In 2024, the technology sector witnessed an unprecedented wave of layoffs, impacting over 60,000 jobs across 254 firms. From giants like Tesla,... More on old.reddit.com
Tech layoffs 2024: 'AI revolution' or something else? : ITCareerQuestions
Hi all, I'm interested in learning about these recent layoffs from big tech companies. If you've unfortunately affected by them, what are the... More on old.reddit.com
Tech industry saw 46,000 layoffs in the first two months of 2024 : Layoffs
A subreddit where redditors can share their stories related to being laid off from their jobs and provide resources to those who are going through... More on old.reddit.com
Videos
Job Market Crisis 2024: Mass Layoffs, AI Takeover, and the ...
15:56
Tech Sector Layoffs In 2024: Apple, Microsoft, Dell, IBM | Tech ...
00:50
Microsoft Layoffs: The Impact on Employees and Job Market - YouTube
AI spending, Microsoft layoffs: Asking for a Trend
09:09
Microsoft, Intel fire thousands of employees | Reasons behind tech ...
02:31
Tech sector layoffs in 2024: Tech layoffs exceed 124,000 in 2024 ...
AP News
apnews.com › article › microsoft-layoffs-xbox-f44079957b12370f72e24edebe9fcc6b
Microsoft's largest layoff in years hits Xbox, sales and other divisions | AP News
July 2, 2025 - Its latest layoffs would cut fewer than 4% of that workforce, according to Microsoft. But it has already had at least three layoffs this year and it’s unlikely that new hiring has matched the amount lost.
US Cloud
uscloud.com › home › sources point to significant microsoft layoffs coming in 2025
Sources Predict Significant Microsoft Layoffs in 2025 - US Cloud
April 1, 2025 - Sources such as R&D World announced findings that AI drove significant restructuring across technology sectors, specifically noting that Microsoft’s Azure team cuts in 2024 were enacted while sustaining an AI development focus.
Reuters
reuters.com › business › world-at-work › microsoft-lay-off-many-9000-employees-seattle-times-reports-2025-07-02
Microsoft to cut about 4% of jobs amid hefty AI bets | Reuters
July 2, 2025 - July 2 (Reuters) - Microsoft (MSFT.O), ... employees worldwide as of June 2024, had announced layoffs in May, affecting around 6,000 workers....
The Seattle Times
seattletimes.com › business › microsoft › reports-of-coming-layoffs-swirl-at-microsoft-as-workers-worry-theyre-next
Reports of coming layoffs swirl at Microsoft as workers ...
June 25, 2025 - Read all the latest news about Microsoft from The Seattle Times business staff.
Udonis
blog.udonis.co › mobile-marketing › mobile-games › microsoft-layoffs
Microsoft Layoffs: 20,000+ Jobs Lost in 4 Years
July 17, 2025 - From 2022 through 2025, Microsoft eliminated an estimated 20,000 to 22,000 jobs across the company. This includes cuts in consulting, customer support, engineering, sales, gaming, and even middle management.
Fortune
fortune.com › 2025 › 07 › 03 › why-microsoft-laid-off-9000-employees
Why Microsoft laid off 9000 employees
July 3, 2025 - (Photo: Victor J. Blue/Bloomberg/Getty Images) Microsoft announced on Thursday that it will cut approximately 9,000 jobs, representing just under 4% of its global workforce, in its largest round of layoffs since 2023.
TrueUp
trueup.io › layoffs
Layoffs Tracker - All Tech and Startup Layoffs
2 days ago - So far in 2025, there have been 716 layoffs at tech companies with 209,838 people impacted (583 people per day). In 2024, there were 1,115 layoffs at tech companies with 239,101 people impacted.
CNBC
cnbc.com › 2025 › 07 › 24 › microsoft-satya-nadella-memo-layoffs.html
Microsoft CEO Nadella says layoffs have been 'weighing heavily' on him
July 24, 2025 - After eliminating over 15,000 positions this year, Microsoft CEO Satya Nadella now says the company's mission needs to change due to the rise of AI.
CBS News
cbsnews.com › moneywatch › microsoft to lay off 6,000 employees in cost-cutting move
Microsoft to lay off 6,000 employees in cost-cutting move - CBS News
May 13, 2025 - Microsoft on Tuesday said it's cutting 3% of its workforce across the board. The layoffs are expected to impact all levels and geographies, but will focus on reducing management levels, the company said in a statement.
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.
USA Today
usatoday.com › story › money › 2025 › 05 › 13 › microsoft-layoffs-job-cuts-2025 › 83598994007
Microsoft layoffs: Tech giant cutting thousands of jobs, reports say
May 14, 2025 - The news marks the latest wave of tech company layoffs in recent years, including several rounds of cuts at Microsoft. The tech giant cut 10,000 jobs in 2023, and roughly 1,900 people were axed from its Activision Blizzard and Xbox divisions in 2024.
GeekWire
geekwire.com › home › microsoft › microsoft cuts another 40 jobs in washington state, continuing layoffs amid ai investment surge
Microsoft cuts another 40 jobs in Washington state, continuing layoffs amid AI investment surge
August 4, 2025 - Microsoft makes another 40 layoffs in Washington, bringing the total in its home state to 3,160 since May, part of 15,000+ cuts globally.
The Hindu
thehindu.com › sci-tech › technology › tech-layoffs-2024-job-cuts-at-microsoft-google-apple-and-other-firms › article68572100.ece
Tech layoffs 2024: Job cuts at Microsoft, Google, Apple, and other firms - The Hindu
August 28, 2024 - According to the tracker Layoffs.fyi, tech companies have laid off more than 124,000 employees as of August 20, 2024, taking the overall tally of layoffs since 2022 to 428,449. A combination of factors including cost cutting to invest in the ...
Heyyy HR
heyyyhr.com › home › microsoft layoff its d.e.i team in 2024
Microsoft Layoff Its D.E.I Team in 2024 | Heyyy HR by Timeka Green
January 24, 2025 - Have you heard about the Microsoft layoff in 2024? The Microsoft layoff was specifically aimed at its D.E.I Team. D.E.I stands for diversity, equity, and inclusion. This move indicates a shift in the company’s approach to DEI, raising questions ...
The Seattle Times
seattletimes.com › business › microsoft › behind-microsofts-layoffs-a-new-attitude-shaped-by-ai
Behind Microsoft's layoffs: A new attitude shaped by AI
Read all the latest news about Microsoft from The Seattle Times business staff.
Reddit
reddit.com › r/microsoft › the primary causes of microsoft layoffs
r/microsoft on Reddit: The primary causes of Microsoft layoffs
July 10, 2025 -
Too much hiring during Covid
overspending on purchasing game studios
investing into AI infrastructure with nothing in return
reducing American workers, hiring offshore workers
moving from personal growth model to make profit fast model
Microsoft leadership has lost focus
Top answer 1 of 5
202
IMO the key reason is culture change being driven at the top. Satya has been hiring a bunch of external talent who have brought in their culture. Jay Parikh from Meta, the COO from Walmart, Charlie Bell from Amazon, Mustafa, Kevin Scott and the LinkedIn folks. It's just Scott and Rajesh in the SLT that are MSFT long-timers, no other internal promos. So Satya is counseled by people with different styles, often a very retail-like culture and that's leading to a bunch of good cultural attributes falling by the wayside when push comes to shove
2 of 5
178
It's just greed/reduction at this point. They're firing qualified people left and right.
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 - The layoffs follow a reduction of about 6,000 positions in May. Microsoft had 228,000 employees at the end of June 2024, its most recent disclosure.
Bloomberg
bloomberg.com › news › articles › 2025-06-02 › microsoft-layoffs-continue-with-hundreds-more-cut
Microsoft (MSFT) Layoffs Continue With Hundreds More Jobs Cut - Bloomberg
June 3, 2025 - Microsoft Corp. cut hundreds more jobs just weeks after its largest layoff in years, underscoring the tech industry’s efforts to trim costs even as it plows billions of dollars into artificial intelligence.