Tech giant Microsoft is slashing 3 percent of its global workforce — a move that will affect thousands of employees across all departments and regions.
The cuts, revealed Tuesday, come even as the company enjoys booming profits and a surging stock price. About 6,480 positions will go.
‘We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,’ a Microsoft spokesperson told CNBC.
The company — which has a global headcount of 228,000, with 126,000 in the US — said the layoffs are not related to performance. Instead, the goal is reportedly to cut down on layers of management.
It marks Microsoft’s largest round of layoffs since 2023, when it eliminated 10,000 jobs amid a wider tech downturn.
In January, Microsoft also quietly cut some roles — those layoffs were tied to performance, unlike this week’s broader restructuring.
The news comes as Microsoft shares soared to $449.26 on Monday, their highest level this year.
The stock hit a record $467.56 in July 2023, underlining the company’s strong financial footing despite the job cuts.
Microsoft Chairman and CEO Satya Nadella
Google is forcing some remote workers to return to the office for at least three days a week
Microsoft is the most valuable company in the world — with a market capitalization of over $3 trillion.
But it is looking to rein in costs as it funnels billions into its ambitious bet on artificial intelligence.
The cuts will be across all levels and geographies, CNBC reported.
Microsoft did not immediately respond to a request for comment.
Meanwhile, rival Google last month demanded staff return to office three days a week or lose their job.
