Microsoft announces a new wave of layoffs, just weeks after cutting 6,000 jobs

Microsoft is laying off more employees, just weeks after cutting 6,000 roles across its global workforce. This time, more than 300 workers are affected in what the company calls another round of “organizational changes,” according to a report from Bloomberg.

The layoffs were disclosed in a state filing reviewed by Bloomberg. Microsoft confirmed the move on Monday, saying it’s part of a broader strategy to stay competitive and better align the business with long-term goals, particularly around artificial intelligence and cloud infrastructure.

“More than 300 employees were told their positions had been eliminated on Monday, according to a Washington state notice reviewed by Bloomberg.”

Microsoft Lays Off More Staff to Boost AI Focus

The news comes on the heels of a strong earnings report. Microsoft posted $25.8 billion in net income last quarter and offered a bullish outlook. Yet, even with record profits, the company is adjusting its structure, echoing similar changes across the tech sector as firms move quickly to shift focus and trim overhead.

Back in May, Microsoft slashed 7,000 jobs, around 3% of its workforce, across divisions and leadership levels. At the time, the company said the decision was about staying agile in a shifting market. A spokesperson reiterated that Monday’s move wasn’t performance-based, but part of an ongoing effort to flatten management layers. It mirrors Amazon’s own recent push to eliminate “unnecessary layers” to boost speed and efficiency.

Microsoft now joins a long list of tech companies making cuts even while investing heavily in AI. Just last week, CrowdStrike said it was laying off 5% of its workforce. In March, Amazon announced plans to remove 14,000 managerial positions to trim $3.5 billion in annual costs.

Earlier this year, Microsoft also laid off 1,900 people from its gaming unit, just a day after hitting a $3 trillion valuation. That came after smaller rounds of performance-related cuts earlier in the year. This latest wave is said to be unrelated to individual performance.

CEO Satya Nadella previously signaled a shift in how Microsoft thinks about go-to-market strategy, especially as demand surges for AI-driven cloud services like Azure. While growth in Azure’s traditional offerings slowed, AI-specific usage exceeded expectations.

“How do you really tweak the incentives, go-to-market?” Nadella said earlier this year. “At a time of platform shifts, you kind of want to make sure you lean into even the new design wins, and you just don’t keep doing the stuff that you did in the previous generation.”

As of the end of May, Microsoft had about 228,000 employees worldwide. The company didn’t disclose an exact number for this round, but it’s one of the largest since last year’s 10,000-job cut.