Microsoft Slashes 3% of Global Workforce in Restructuring Push

NEW YORK -- Microsoft confirmed Tuesday its decision to reduce its global workforce by 3 percent. The cuts will impact employees across all company levels, various teams, and different geographical regions. This move signals a period of organizational change for the technology giant, which aims to adapt to a dynamic marketplace. CNBC first reported the development.

With 228,000 employees worldwide as of last June, the reduction will affect thousands of individuals. This action represents Microsoft's most substantial job cut since the elimination of 10,000 positions in 2023. A company spokesperson clarified these new reductions are not tied to individual performance, distinguishing them from smaller, performance-based adjustments made in January.

A primary objective cited for the current layoffs is the streamlining of management layers within the organization. The restructuring occurs despite Microsoft reporting better-than-expected financial results in late April. The company announced $25.8 billion in quarterly net income and presented an upbeat forecast for the coming periods.

Earlier in the year, CEO Satya Nadella had indicated potential strategic shifts. In January, he discussed with analysts the necessity for sales execution changes and adapting go-to-market approaches, particularly as Microsoft leans into new design wins during significant platform transitions, including advancements in artificial intelligence. Microsoft shares closed Monday at $449.26, near their highest price this year.