Microsoft plans to cut 9,000 jobs in latest round of layoffs

Microsoft is planning to lay off around 9,000 staff members in another wave of job losses, according to new reports.

The tech giant will cut jobs in departments right across the company, from top management down to entry-level positions, and the cuts will happen in offices around the world.

According to CNBC, the job losses will affect less than 4 per cent of everyone who works for Microsoft globally. The cuts will hit multiple departments, levels, and geographies.

Microsoft says the redundancies are needed to help the company compete better in today’s fast-moving business world.

“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” a Microsoft spokesperson said in an emailed statement.

People working inside Microsoft told CNBC that bosses want to get rid of too many layers of management. The idea is to make teams work faster and more effectively by cutting out unnecessary middle management roles.

Even Microsoft’s gaming business, which includes Xbox and popular video games, won’t escape the job cuts. Phil Spencer, who runs Microsoft Gaming as chief executive officer (CEO), told staff in an internal message that some gaming jobs would go too.

“To position Gaming for enduring success and allow us to focus on strategic growth areas,” Spencer said.

Read Also: Okra’s CEO quits to become Kernel’s new head of Engineering

“We will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.”

This isn’t the first time Microsoft has cut jobs this year. The company has been steadily reducing its workforce over the past several months.

Back in January, Microsoft laid off some workers based on how well they were performing their jobs. However, that round affected less than one per cent of all Microsoft employees. Then in May, the company cut over 6,000 jobs, and in June it axed at least 300 more positions.

When you add up all these job losses, including the latest 9,000, Microsoft may have eliminated more than 15,000 jobs this year alone.

To put this in perspective, Microsoft employed roughly 228,000 people worldwide as of June 2024, making it one of the biggest employers in the technology industry.