Microsoft Reportedly Slashing 3% Of Global Workforce

A new report hit the wires late Tuesday morning in New York, revealing that Microsoft plans to implement „organizational changes” impacting about 3% of its global workforce, spanning all levels, teams, and regions.

„We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson told CNBC in a statement.

The Microsoft spokesperson did not specify the number of job cuts or the timing of the changes.

Data from Bloomberg shows Microsoft employed about 228,000 employees worldwide at the end of 2024, implying total cuts could top 7,000.

The report is puzzling since Microsoft reported better-than-expected third-quarter results, which ended on March 31, driven by its Azure cloud business, and issued strong guidance.

MSFT beat on everything…

However, in the first three months of 2025, Microsoft spent $21.4 billion on Capital expenditures, including assets acquired under finance leases, down more than $1 billion from the previous quarter (and below the $22.56 billion consensus).

The spokesperson told CNBC that the latest round of proposed job cuts is unrelated to performance.

In early 2023, Microsoft laid off 10,000 employees. Total workforce growth has stalled since 2022 after exploding every year since 2016.

Meanwhile, MSFT shares are back at record highs ….

Several reports have suggested that Microsoft is scaling back on data center projects, yet the big tech firm has rejected those reports.