Microsoft Cuts 9,000 Jobs Amid AI Shift — All You Need to Know

Outlook Business Desk

Microsoft Layoffs 2025

Microsoft has laid off around 9,000 employees—about 4% of its global workforce—as part of a broader restructuring and efficiency push aimed at adapting evolving market demands.

Ongoing Restructuring Drive

As per CNBC, Microsoft said that it will keep making organisational changes to stay competitive in a dynamic market. Earlier in January 2025, it announced plans to cut 1% of its workforce, based on performance metrics.

Microsoft

Layoffs Continue in 2025

Microsoft has already cut over 6,000 jobs in May and 300 more in June. This follows January’s performance-based cuts, marking a sustained effort to trim workforce amid shifting business goals.

Second Biggest in History

With multiple rounds of layoffs in 2023 and 2025, the latest one marks Microsoft’s second-largest mass layoff after it cut 18,000 jobs in 2014.

AI Tools Reshape Jobs

Though not officially cited, Microsoft’s shift toward AI coding assistants may be influencing layoffs. These tools automate parts of software development, signalling a move towards AI-driven workflows and reduced manual coding roles.

Developer Roles Evolving

Microsoft and Google are leading in Artificial Intelligence (AI) research and development (R&D) investments. As AI tools begin handling routine coding tasks, traditional software developer roles are rapidly transforming under ongoing restructuring.

Microsoft Shares

Microsoft shares closed down 0.2% on Wednesday, while the S&P 500 gained 0.5%. The stock had closed at a record high of $497.45 on June 26.

Freepik

Strong Growth Outlook

Despite the layoffs, Microsoft expects 14% year-on-year revenue growth for the June quarter. Executives credit strong demand for productivity tools like Office 365 and Microsoft Teams.

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