Microsoft announced layoffs affecting 830 employees in its home state of Washington, part of a larger reduction of approximately 9,000 jobs worldwide, representing about 4% of its global workforce of 228,000 as of June 2024. The layoffs, reported on July 2, 2025, and effective August 31, 2025, impacted various roles, including cloud solution architects, game designers, audio designers, mechanical engineers, lawyers, and sales staff, with a focus on reducing redundancy and enhancing efficiency. This follows earlier cuts in 2025, including 1,985 jobs in May and 305 in June in Washington, totaling 3,120 local layoffs since May.
The company cited organizational changes to position itself for success in a dynamic marketplace, with significant investments in AI and cloud infrastructure as a backdrop. Affected divisions include sales, gaming (Xbox), and Microsoft Research, with specific cuts like 16 customer success account managers, 28 in sales strategy, and 17 in cloud solution architecture. Microsoft’s CFO, Amy Hood, emphasized cost efficiencies, while CEO Satya Nadella has not publicly commented.