Microsoft's job cuts will be less than 2.5% of its workforce - Business Insider

Microsoft has announced a new round of job cuts, affecting less than 2.5% of its global workforce, according to a Business Insider report. This follows a previous reduction of 6,000 employees in May 2025, which was part of the company’s streamline operations and reduce management layers. The latest layoffs are consistent with Microsoft’s enhance efficiency by simplifying processes, products, and roles.

CFO Amy Hood recently indicated that Microsoft expects its headcount to decrease in the coming quarters as part of a broader shift toward faster, more agile operations. Hood emphasized the need for “tighter, more accountable squads” in an internal memo to employees. The company has also offered voluntary buyouts to long-tenured employees, impacting approximately 7% of its U.S. workforce in April 2026.

These reductions are part of a broader trend among Big Tech firms, including Google and Amazon, which are also restructuring to flatten management hierarchies and improve operational efficiency. Microsoft’s moves reflect a strategic response to evolving market dynamics and competitive pressures in the AI and cloud computing sectors.