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Microsoft to Lay Off 9,000 Employees in Its Largest Job Cut Since 2023

The layoffs will primarily affect sales and marketing roles. This follows earlier workforce reductions in May and June 2025. Rising economic uncertainty and cost-cutting efforts have driven the decision, as the company shifts software sales for small and mid-sized businesses to third-party agencies.

Last Updated : Thursday, 03 July 2025
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Leading IT company Microsoft is once again carrying out a massive layoff. The company is set to lay off around 4 per cent of its workforce, which amounts to approximately 9,100 employees. This move is considered the biggest layoff since 2023, according to a report by the American Daily Newspaper. Major U.S. companies have gradually been cutting jobs across various sectors due to growing economic uncertainty and efforts to reduce expenses — a trend that was also seen last year.

As of June 2024, Microsoft had around 228,000 employees globally. However, the company has not yet issued any official statement regarding the layoffs. According to a media report, Microsoft had already been planning to lay off thousands of employees in its sales department.

6,000 Employees Were Laid Off in May

Earlier, in May 2025, Microsoft had laid off around 6,000 employees, which was seen as one of the largest cuts by the company in recent years. Following that, there were reports in early June that the company had also laid off more than 300 employees. This was revealed based on a notice Microsoft gave to the state of Washington, as reported by Bloomberg.

Sales and Marketing Hit the Hardest

Unlike previous layoffs that mainly affected software engineers or product developers, this round will primarily impact employees in customer-facing roles such as sales and marketing. As of June 2024, Microsoft’s sales and marketing team had about 45,000 employees, making up a significant portion of its total workforce. The company had already signaled this shift back in April 2025, when it announced that software sales for small and mid-sized businesses would now be handled through third-party agencies.