New wave of layoffs at Microsoft: thousands of employees affected
It's been a tough week for thousands of Microsoft employees. The tech giant has just announced a new wave of layoffs that affects about 9,000 people worldwide, representing nearly 4% of its total workforce.
AI at the heart of difficult decisions
Behind these cold figures lies a complex human reality. Microsoft explained that this painful decision stems mainly from the huge investments made in artificial intelligence. With an announced budget of $80 billion for 2025, the company is trying to remain competitive, even if it means making difficult decisions. This creates considerable pressure on profit margins, particularly in the cloud sector.
Xbox hit hard
Among the affected divisions, Xbox is hard hit. This is already the fourth time in 18 months that video game teams have undergone major restructuring. Behind these layoffs, creators, developers, technicians and many other professionals who are passionate about their profession are seeing their daily lives turned upside down.
Xbox head Phil Spencer has spoken publicly about the situation, stressing the need to broaden the player base to ensure the future of the industry. He also spoke about the importance of supporting teams in these difficult times.
Sales teams also affected
At the same time, the sales and marketing departments are not spared. Microsoft is planning a deep reorganization, including increased outsourcing, directly impacting thousands of employees used to representing the company to its customers.
Layoffs despite solid financial results
Paradoxically, these layoffs come at a time when Microsoft is posting rising financial results. With sales of $70 billion in the last quarter, up 13%, and net income of more than $25 billion, it can be difficult to understand, humanly speaking, the logic behind these job cuts.
Microsoft is not alone in this situation. Other giants such as Meta, Google and Amazon are also going through similar periods. This trend, fueled by economic uncertainty and massive investment in new technologies, highlights the growing challenge of combining technological progress and social responsibility.
Layoffs at Microsoft in numbers
Since the beginning of 2024, Microsoft has undertaken several significant waves of layoffs, affecting about 18,000 employees worldwide, or nearly 8% of its global workforce. These measures are part of a broader strategic restructuring plan aimed at optimizing operations, reducing hierarchical levels and redirecting resources to priority areas, including artificial intelligence.
Among the key moments of these layoffs are the elimination of 1,900 positions in January 2024, mainly in the Activision Blizzard and Xbox divisions, following the acquisition of Activision Blizzard. In May of the same year, the closure of several studios such as Tango Gameworks and Arkane Austin led to further significant job losses. The Xbox division suffered further cuts in September 2024, with an additional 650 layoffs.
In 2025, layoffs have intensified. In May, Microsoft cut more than 6,000 positions in its product and engineering teams. Then, in July, a new wave of layoffs affected up to 9,000 employees, particularly affecting the Xbox division and global sales teams.
Support and solidarity
Behind each job cut, there is a personal story: families, careers, professional ambitions that are abruptly interrupted or disrupted. These employees deserve recognition and support. As the company looks to the future, it will be imperative to consider the human aspect to rebuild a healthy and sustainable corporate culture.
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