Microsoft is initiating its largest round of layoffs since 2023, cutting approximately 6,000 jobs-  around 3% of its global workforce.

The company, which had 228,000 full-time employees as of June 2024 (with 55% based in the U.S.), is targeting job reductions at all organizational levels worldwide.

However, the primary focus is on trimming management layers to boost efficiency, as emphasized by CFO Amy Hood during an April earnings call.

She noted that streamlining management would help Microsoft build more agile and high-performing teams. These layoffs follow a smaller round of performance-based cuts in January 2025.

CEO Satya Nadella reiterated the company's AI-first strategy, saying that cloud and AI innovations are transforming business operations and helping customers increase productivity and cut costs.

Despite consistently strong earnings, beating Wall Street expectations for four consecutive quarters, Microsoft is prioritizing structural realignment to stay competitive in a changing tech landscape.

Layoff notices have already begun circulating, with the company stating the changes are essential for adapting to a dynamic market.

These job cuts come amid broader industry shifts, including major reductions by other global firms like Nissan.