7 key things to know about Microsoft's second-biggest layoff in history

Microsoft

is undergoing different large circular of layoffs, impacting astir 9,000 employees — astir 4% of its planetary workforce. This determination marks the company’s 2nd largest circular of occupation cuts successful 2025 and reflects its ongoing efforts to streamline operations and reshape teams amid changing concern priorities. The layoffs span crossed departments, locations, and seniority levels, with a important fig affecting its Xbox gaming division. Studios similar King, ZeniMax, and Turn 10 are among those hit, and projects similar Perfect Dark and Everwild person been scrapped. Here’s everything you request to cognize astir Microsoft’s latest workforce reduction.

Microsoft occupation cuts: Number of radical laid off

Employees from assorted teams, locations, and seniority levels volition beryllium affected by the latest circular of occupation cuts announced by Microsoft. The bundle elephantine revealed that it is laying disconnected 4% of its planetary workforce that translates to astir 9,000 employees.Microsoft said that the occupation cuts are portion of "organizational changes indispensable to champion presumption the institution and teams for occurrence successful a dynamic marketplace."

Microsoft occupation cuts: Several Gaming Studios closed

Employees successful Microsoft’s Xbox part known arsenic Microsoft Gaming volition beryllium deed hard by these layoffs. While the nonstop numbers and divisions are not known yet. According to a Bloomberg report, King, the Microsoft-owned institution down Candy Crush, is cutting astir 10% of its staff, oregon astir 200 jobs. Other parts of Microsoft, similar ZeniMax, are besides laying disconnected workers. The institution is besides cutting implicit 70 jobs astatine its Forza Motorsport studio, Turn 10, and has cancelled the games Perfect Dark and Everwild. The crippled workplace moving connected Perfect Dark, called The Initiative, is besides shutting down due to the fact that of these occupation cuts.

Microsoft’s 2nd biggest occupation chopped of 2025

Notably, this is the 2nd biggest occupation chopped by Microsoft successful the twelvemonth 2025 and its 2nd largest overall. The institution slashed 6,000 jobs successful May this year, targeting merchandise and engineering roles, followed by astatine slightest 300 much occupation cuts successful June. The institution past cited the request to "remove layers of absorption to summation agility and effectiveness" portion redirecting resources toward artificial quality development.

What Microsoft spokesperson said

A Bloomberg study quotes a Microsoft spokesperson who said the occupation cuts volition impact employees from antithetic teams, locations, and acquisition levels, arsenic Microsoft aims to simplify its operation and trim absorption layers. “We proceed to instrumentality organizational changes indispensable to champion presumption the institution and teams for occurrence successful a dynamic marketplace,” the spokesperson added.

What Microsoft gaming part caput said successful interior memo

Xbox person Phil Spencer sent an interior memo to its employees. Informing astir the layoff, Spencer said “To presumption Gaming for enduring occurrence and let america to absorption connected strategical maturation areas, we volition extremity oregon alteration enactment successful definite areas of the concern and travel Microsoft’s pb successful removing layers of absorption to summation agility and effectiveness.”“Prioritizing our opportunities is essential, but that does not lessen the value of this moment. Simply put, we would not beryllium wherever we are contiguous without the time, energy, and creativity of those whose roles are impacted,” helium added.“HR is moving straight with impacted employees to supply severance program benefits (aligned with section laws), including pay, healthcare coverage, and occupation placement resources to enactment their transition.”

Previous occupation cuts by Microsoft

Microsoft has held respective rounds of layoffs successful caller years. In 2023, it slashed 10,000 jobs, pursuing the company's $69 cardinal Activision Blizzard acquisition successful October 2023. In 2024, the tech elephantine chopped 11,000 jobs past year.The institution had laid disconnected aggregate employees this twelvemonth alone. In May, Microsoft slashed 6,000 jobs, positive an further 305 cuts successful June.

Impact connected Microsoft stock

According to a CNBC report, Microsoft banal deed a grounds precocious of $497.45 connected June 26. On Wednesday - July 2, it dipped somewhat by 0.2%, portion the S&P 500 roseate 0.5%.