Microsoft is cutting more than 6,000 jobs globally, amounting to roughly 3% of its total workforce. The decision, revealed on Tuesday, represents the company’s most significant round of layoffs since it slashed 10,000 positions last year. The restructuring will impact staff across all levels of the organisation, including teams at Microsoft-owned LinkedIn and several international divisions.

The announcement was confirmed by Microsoft spokesperson Pete Wootton in a statement to The Verge, where he said: “We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.”

The layoffs are part of a broader internal overhaul aimed at boosting efficiency and agility. Microsoft’s Chief Financial Officer, Amy Hood, had hinted at upcoming structural changes during the company’s April 30 earnings call, stressing a focus on “building high-performing teams and increasing our agility by reducing layers with fewer managers.” The reduction in headcount appears to align with these efforts to streamline operations and remove excessive management layers.

These layoffs follow a trend of gradual reductions within Microsoft since early 2023. The company began making “performance-based” cuts earlier this year, affecting hundreds of employees. Prior to the current round, Microsoft had already eliminated over 1,900 positions from Activision Blizzard and Xbox in early 2024. In May, it shuttered several game studios, including Tango Gameworks—developers of Hi-Fi Rush—and Arkane Austin, the team behind Redfall. While Tango Gameworks has since re-emerged under Krafton, the closures reflect Microsoft’s ongoing reshaping of its gaming division.

In September 2024, an additional 650 Xbox roles were axed as part of post-acquisition restructuring efforts tied to the integration of Activision Blizzard. Other areas of Microsoft’s vast business empire have also seen cuts. Around 1,000 employees from its HoloLens and Azure cloud divisions were laid off in June.

The current cuts are expected to affect a wide range of roles, including management, technical, and support functions. While exact regional impacts have not yet been disclosed, sources indicate that international offices will not be spared.

Microsoft’s continued emphasis on efficiency suggests that further restructuring could be on the horizon, particularly as the company prioritises investments in artificial intelligence, cloud infrastructure, and enterprise software. The ongoing transition towards leaner operations is seen by analysts as a move to stay competitive amid a fast-evolving tech landscape.

While Microsoft remains one of the most valuable and profitable companies in the world, the scale of its job cuts highlights the challenges even tech titans face in aligning workforce dynamics with strategic goals. Employees, particularly those at LinkedIn, now face uncertainty as the company realigns its priorities.

The layoffs also add to a broader pattern of downsizing in the technology sector, where companies continue to balance growth ambitions with economic pressures and investor expectations.