Microsoft Lays Off 9,000; Trims Layers, Reorganizes for Speed

July 03, 2025 02:04 PM PDT | By EODHD

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Microsoft Lays Off 9,000; Trims Layers, Reorganizes for Speed — Image source: Kalkine Media

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Microsoft (MSFT, Financials) is kicking off its new fiscal year with another round of job cuts about 9,000 roles are being eliminated, affecting just under 4% of its global staff. While the percentage may seem small, the broader message is unmistakable: Microsoft is reengineering how it runs and who's in charge of what. Warning! GuruFocus has detected 6 Warning Sign with MSFT. The restructuring hits teams across the company, spanning functions, seniority levels, and regions. It follows multiple rounds earlier this year more than 6,000 jobs cut in May, around 300 in June, and a smaller round tied to performance in January.

The company had roughly 228,000 employees as of June 2024. Behind the numbers is a clear shift in structure; Microsoft is flattening its org chart cutting out layers of management that stand between frontline staff and top leadership. The goal is to move faster; to make decisions without excessive bottlenecks; and to focus on what it calls strategic growth areas. That includes Microsoft Gaming, where the company is scaling back or exiting some areas while aligning with the broader push for simpler reporting lines and faster execution. The intent is to give individual contributors more direct access to decision-makers and reduce bureaucracy.

Microsoft, despite the cuts, remains financially rock-solid. In the March quarter, it pulled in nearly $26 billion in net income on $70 billion in revenue numbers that blew past analyst expectations. Executives are guiding for 14% revenue growth in the June quarter, with Azure and Office seen as primary drivers. This article first appeared on GuruFocus. View Comments

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