Why Microsoft Is Suddenly Cutting a Whopping 6,000 Jobs

Microsoft is issuing pink slips to 3 percent of its employees across all levels, affecting roughly 6,000 staff members.

"We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson said in a statement on Tuesday (May 13).

A whopping 1,985 workers at Microsoft's headquarters in Washington state will be impacted by the layoffs.

As of June 2024, the tech company employed 228,000 people worldwide.

Microsoft is looking to streamline its workforce and increase efficiency across the company.

They did not state whether AI (artificial intelligence) is a factor in the company's headcount reduction.

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In April, Microsoft announced better-than-expected results, with $25.8 billion in quarterly net income.

During an earnings call, CFO Amy Hood said the company was focused "on building high-performing teams and increasing our agility by reducing layers with fewer managers," according to CNBC.

Microsoft's move is part of 2025's recent trend of tech layoffs.

More than 53,000 tech employees have been laid off at 126 companies so far this year.

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In January 2023, the tech giant slashed 10,000 jobs to cut costs due to concerns over economic uncertainty.

UPS is another major company slashing jobs. The United Parcel Service will cut nearly 20,000 jobs before the end of the year.

As the company looks to overhaul its workforce, UPS will close many of its locations nationwide.

Reuters reports the closings are linked to UPS planning for less shipping and receiving tied to Amazon.

The outlet says UPS will reduce "Amazon shipping and delivery volumes by 50 percent."