Microsoft is in the midst of a series of 2025 layoffs. These Microsoft layoffs will end up impacting around six thousand employees. This is about three percent of Microsoft’s total workforce. Some layoffs have focused on reducing the number of people working for the company’s headquarters. Other Microsoft layoffs have affected people working in software development for the company.
In general, the layoffs are designed to redesign layers of management within the Microsoft organization. Microsoft is also generally restructuring to prioritize AI within its development focus. ‘The layoff series could end up being the biggest the company has seen since 2023.
About the Microsoft Layoffs
There has been an announcement about layoffs at Microsoft. According to CNBC, the layoffs include “3% of employees… affecting about 6,000 people.” The layoff decision could potentially impact people throughout the Microsoft organization. A Microsoft spokesperson offered CNBC a statement on the proceedings.
The statement describes the layoffs as geared “to best position the company for success.” The spokesperson cites “a dynamic marketplace” as the context for the personnel changes. The first part of the Microsoft organization affected is its headquarters. The Microsoft headquarters location is in Redmond, Washington. The number of employees connected to the Redmond headquarters is being reduced by 1,985. CNBC reports that this is “including 1,510 in office.” This series of layoffs is set to be Microsoft’s largest since 2023.
Reasons Provided for Microsoft Layoffs
One stated objective of the layoffs is the reduction of management layers. Amy Hood is the chief financial officer at Microsoft. She comments on Microsoft’s focus on having fewer layers of management within its organizational infrastructure. According to The Guardian, Hood states Microsoft is prioritizing “building high-performing teams and increasing… agility.” This process is not unique to Microsoft. The Amazon corporation announced a similar layoff initiative in January. CNBC reports Amazon had found layers in its corporate structure that could be deemed “unnecessary.”
Another objective is to lay the groundwork for emphasizing AI in Microsoft’s offerings. Forbes describes the layoff announcement as “a calculated step.” According to Forbes, Microsoft is restructuring toward “robust investment in Microsoft’s burgeoning AI platform.” Reuters and Forbes discuss the connection between Microsoft’s involvement with AI and its layoff plans. The news organizations state that Microsoft’s enthusiasm for AI is one factor influencing the layoffs. They state the layoffs “streamline certain operations… to drive the company’s AI-centric strategy.”
Software Development Employees Affected
Microsoft’s software development staff seems to have been particularly impacted by this set of layoffs. According to The Register, the Microsoft layoffs seem “to have fallen largely on software developers.” The Register states these employees include “several prominent Python developers and a veteran TypeScript developer.”
Microsoft employee Mike Droettboom writes on LinkedIn: “It’s been a tough couple of days.” Droettboom is Microsoft’s principal software engineering manager. He also works at Microsoft as a CPython core developer. He describes finding out about layoffs while on the way to Pittsburgh.
Droettboom had been traveling to Pittsburgh with a team of Microsoft CPython developers. They were going to the Python Language Summit. However, he learned that support for his CPython project had been cut off. He states his “heart goes out” to the team members who lost their jobs. He continues that the time has been difficult for him, “but even harder for others.”
Overview of the Layoffs’ Impacts
The Microsoft layoffs will displace three percent of the company’s staff. In total, this will be about six thousand people. The layoffs have been described as focusing on limiting management layers. Many employees affected by the Microsoft layoffs have been related to software development. Microsoft’s head office staff is set to be cut by 1,985 employees. Out of these employees, 1,510 people have been working at the headquarters location.
