Microsoft's shares have surged by nearly 16% following the announcement of a 3% workforce reduction, impacting over 6,000 employees globally. This restructuring aims to streamline operations, flatten management,

Microsoft began issuing layoff notices to thousands of employees Tuesday morning, two weeks after hinting at plans to streamline its workforce by cutting layers of management and making teams more agile.

Microsoft's layoffs reflect a broader tech industry trend, with firms like Deloitte cutting 20,000 jobs in 2025, per X sentiment. The company aims to reinvest savings into AI, targeting a £78 billion ($103 billion) AI market by 2027, but risks alienating talent in a competitive field.

Microsoft has announced plans to lay off thousands of employees across the company. The 3% workforce reduction was confirmed by a Microsoft spokesperson in a Tuesday email to The Center Square. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,

Microsoft, based in Redmond, Washington, said the layoffs will be across all levels and geographies but the cuts will focus on reducing the number of managers.

Microsoft says the cuts will hit all levels, teams, and locations with a focus on reducing the number of managers.