Microsoft is laying off about 9,000 employees in 2025. This is one of the company’s biggest job cuts in years and has many people asking why. In July 2025, Microsoft announced it is laying off about 9,000 workers. This is a big number and has many people asking: why is this happening, and what does it mean for the future?

Let’s break it down in simple terms.

Why Microsoft Is Cutting Jobs

Microsoft said the job cuts are part of a plan to make the company work better. According to the company, the layoffs will affect less than 4% of its total workforce. That means most workers will keep their jobs, but 9,000 people will not.

Microsoft has about 228,000 employees around the world. So, this layoff is a small part of the company, but it’s still a big deal.

What the Company Said

A Microsoft spokesperson said they are “making changes to help the company succeed in a fast-changing world.” That means the company wants to move faster, save money, and focus on what matters most.

Not the First Round of Layoffs

This is not the first time Microsoft has cut jobs:

• In January 2025, it laid off a small number of workers.
• In May 2025, over 6,000 jobs were cut.
• In June 2025, about 300 more workers lost their jobs.

This new round in July added another 9,000 layoffs, making this year one of the biggest in job cuts for Microsoft.

In 2023, Microsoft also laid off 10,000 people. And back in 2014, they had their largest layoff ever—18,000 people—after buying Nokia’s phone business.

Who Is Affected?

Microsoft didn’t share every detail, but the cuts are happening across many teams and locations. This includes people at different levels—from new employees to experienced workers.

Gaming Division Also Hit

Phil Spencer, who leads Microsoft’s gaming team, shared that his division is also cutting jobs. He said the goal is to remove “layers of management” so teams can work faster and better. This means fewer bosses and more focus on getting things done.

Why Now?

The layoffs were announced at the start of Microsoft’s 2026 fiscal year. Companies often make big changes when their new budget year begins. This helps them set new goals and focus on new plans.

Market Pressure and Reorganization

Tech companies are under pressure to grow, make money, and stay competitive. Even though Microsoft is making a lot of money, it still wants to be more efficient.

In fact, Microsoft made $26 billion in net income and $70 billion in revenue in just one quarter, according to FactSet. That’s a lot of money. But investors and company leaders still want to improve how the business runs.

One way to do that is by cutting costs—and that often means cutting jobs.

Microsoft Is Still Growing in Some Areas

Even though Microsoft is cutting jobs, it’s also growing in other parts of the company.

Executives expect about 14% revenue growth in the June quarter, thanks to services like Azure cloud computing and software tools like Microsoft 365.

This means the company is trying to shift focus—from older or slower areas to fast-growing parts of the business.

What This Means for the Tech Industry

Microsoft isn’t alone. Other tech companies are also laying off workers in 2025. For example:

(Source: CNBC, Dow Jones, FactSet)

These numbers show that the job market in tech is changing. Some companies are hiring, but others are shrinking to stay competitive.

Is Microsoft in Trouble?

No, Microsoft is not in trouble. In fact, its stock price hit a record high of $497.45 per share on June 26, 2025. That means investors still believe in the company.

But Microsoft wants to prepare for the future. By cutting layers of management and focusing on strong areas like cloud services and AI, the company is getting ready for what’s next.

What About the Workers?

Job loss is always hard. When a company cuts thousands of jobs, many families are affected.

Some of the workers may find new jobs inside Microsoft. Others will need to look for work at other companies. Microsoft has not said if it will offer severance pay or job placement help, but it often does in large layoffs.

If you or someone you know is affected, here are a few steps to take:

• Update your resume and LinkedIn profile
• Reach out to your network
• Look at job openings in your area
• Ask about unemployment benefits

Lessons for Business Owners

If you own a small or mid-size business, there’s something to learn from this. Even the biggest companies need to adapt and change. That means:

• Keeping your technology systems updated
• Making sure your cybersecurity is strong
• Having a team that helps you stay ahead

That’s where local support can help.

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At Redbird Technology Solutions, we’ve been helping Milwaukee businesses for over 25 years. We know how fast the tech world changes—and we can help your business stay secure, updated, and ready for anything.

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• Managed IT services
• Cybersecurity protection
• Security camera installs
• Cloud support and more

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Final Thoughts

The news that Microsoft is laying off about 9,000 employees is big. It shows how even large, successful companies need to change to stay ahead.

While this is tough for the workers affected, it’s also a sign of shifting priorities in tech. Cloud services, AI, and remote tools are becoming more important than ever.

If you’re a business owner, now is the time to make sure your tech is ready for the future. Whether you’re in Milwaukee or nearby, Redbird Technology Solutions can help.

Don’t wait until there’s a problem—talk to a local expert today and protect your business from the inside out.