Microsoft to lay off up to 9,000 employees
FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 21, 2025. REUTERS/Gonzalo Fuentes/File Photo
Microsoft will lay off nearly 4 per cent of its workforce, the company said on Wednesday (Jul 2), in the latest job cuts as the tech giant looks to rein in costs amid hefty investments in artificial intelligence infrastructure.
The company, which had about 228,000 employees worldwide as of June 2024, had announced layoffs in May, affecting around 6,000 workers. It was planning to cut thousands of jobs, particularly in sales, Bloomberg News reported last month.
The Windows maker had pledged US$80 billion in capital spending for its fiscal year 2025. However, the soaring cost of scaling its AI infrastructure has weighed on its margins, with its June quarter cloud margin expected to shrink from last year.
Microsoft said on Wednesday it planned to reduce organisational layers with fewer managers and streamline its products, procedures and roles.
The Seattle Times first reported on the layoffs earlier on Wednesday.
In response to CNA queries, Microsoft said on Wednesday evening it will "continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace".
The Singapore Industrial and Services Employees’ Union (SISEU) and National Trades Union Congress (NTUC) told CNA on Jul 3 that while Microsoft is not a unionised company, some employees are members of SISEU and the Tech Talent Assembly. Both are affiliated with NTUC.
"NTUC stands ready to offer assistance and resources to help our members and workers transition to new job opportunities and provide financial support, if needed," it said.
Singaporeans and permanent residents can tap into the Employment and Employability Institute's job matching services. Affected members and workers can also contact SISEU for assistance.
Separately, Bloomberg News reported Microsoft's Barcelona-based King division, which makes the Candy Crush video game, is cutting 10 per cent of its staff, or about 200 jobs.
Microsoft confirmed to Reuters that its gaming division was impacted by the layoffs, although not the majority of the unit, but did not provide further details.
Big Tech peers, which are investing heavily in artificial intelligence, have also announced job cuts.
Facebook parent Meta earlier this year said it would trim about 5 per cent of its "lowest performers", while Alphabet's Google has also laid off hundreds of employees in the past year.
Amazon has also cut jobs across its business segments, most recently in its books division. The company had earlier laid off employees in its devices and services unit, and communications staff.
Economic uncertainties and rising costs have triggered layoffs across sectors in Corporate America, as companies rush to streamline operations and hedge against further cost pressures.
