Microsoft Could Lay Off 3% of Its Workforce: How Many Jobs Are Affected in Washington?
Microsoft, one of the world’s most influential technology companies, is reportedly laying off approximately 3% of its global workforce, marking another significant chapter in the wave of tech industry downsizing. The news, confirmed by reputable outlets such as CNBC and The Verge, highlights a strategic restructuring that could impact thousands of jobs across the company’s international and domestic operations.
How Many Employees Does Microsoft Have?
As of June 2024, Microsoft employed approximately 228,000 people globally, with around 126,000 of those in the United States, according to Microsoft’s official data.
Based on these numbers, a 3% workforce reduction would potentially impact:
- Worldwide: ~6,840 employees
- U.S. only: ~3,780 employees
These layoffs follow several previous rounds of job cuts, including 10,000 roles eliminated in 2023 and 1,900 positions cut in the Activision Blizzard and Xbox divisions in early 2024.
How Many Microsoft Employees Are Based in Washington?
Microsoft’s headquarters is located in Redmond, Washington, and the state plays a central role in the company’s global operations.
- As of 2024, Microsoft reported employing about 50,000 people in Washington State.
- On May 13, 2025, a filing with the Washington Employment Security Department confirmed that 1,985 Washington-based employees were laid off, as reported by The Seattle Times.
That accounts for roughly 4% of Microsoft’s Washington workforce, slightly higher than the company-wide average of 3%.
Which Departments Are Affected?
According to CNBC, the layoffs are spread across:
- Multiple levels
- Geographies
- Functional teams, including business units like LinkedIn, Microsoft Azure, and product engineering teams
These cuts reflect Microsoft’s push to streamline its organization and “flatten” management layers, as highlighted by CFO Amy Hood during the latest earnings call.
Why Is Microsoft Cutting Jobs?
While Microsoft remains financially strong—with shares up over 6.5% in 2025 so far—the company is reallocating resources to focus more heavily on artificial intelligence (AI) and cloud technologies.
According to Investopedia, Microsoft is projected to spend over $80 billion in the next fiscal year on AI-related infrastructure, partnerships, and internal development.
This move follows a broader trend where tech companies hired aggressively during the COVID-19 pandemic but began reversing course in 2022 as inflation, high interest rates, and changing consumer behaviors began to impact profitability.
Layoffs Across the Tech Industry
Microsoft’s latest round of layoffs mirrors similar actions by other major tech players:
- Amazon has cut more than 27,000 jobs since 2022
- Meta (Facebook) has reduced its workforce by over 21,000 employees
- Alphabet (Google) implemented multiple waves of layoffs in 2023 and 2024
These adjustments signal a shift in tech hiring strategies, where companies now prioritize leaner operations and strategic innovation, particularly in AI and automation.
What’s Next for Microsoft and Its Workforce?
Microsoft has expressed that it will continue investing in “key strategic growth areas,” with a strong focus on AI, cloud infrastructure, and enterprise services. Affected employees are expected to receive severance packages and career transition support, although the specifics were not disclosed.
Despite the reductions, Microsoft remains one of the most valuable companies globally, with a market cap exceeding $2.5 trillion in 2025.
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Final Thoughts
The news of Microsoft cutting 3% of its workforce—impacting nearly 7,000 employees globally—signals a continuation of the tech sector’s recalibration following rapid pandemic-era expansion. With nearly 2,000 of those jobs lost in Washington alone, the impact on the local workforce is considerable.
However, Microsoft’s pivot toward AI and strategic technologies suggests a long-term vision aimed at maintaining dominance in a rapidly evolving digital economy.
