Microsoft Axes 300 More Jobs After 6,000 Cut
Microsoft (NASDAQ:MSFT) cuts another 300 jobs on top of its 6,000-worker reduction, underscoring ongoing cost pressures.
The latest wavemore than 300 positions eliminated this week per Washington state filingsfollows Microsoft's announcement last month to cut 3% of its global staff (about 6,000 roles).
Warning! GuruFocus has detected 4 Warning Sign with MSFT.
These additional cuts bring Microsoft's total 2025 reductions to roughly 6,300, making it one of the largest tech-sector layoffs this year alongside Intel (NASDAQ:INTC). Bloomberg reports did not detail which teams were affected, but the cuts align with Microsoft's plan to implement organizational changes necessary to best position the company for success in a dynamic marketplace.
Through May, 137 tech firms have slashed 62,114 jobsprojected to total 145,080 by year-end, down from 152,922 in 2024according to Layoffs.fyi. Microsoft's incremental layoffs come despite a modest 0.12% stock uptick this morning, even as investors weigh mixed signals from its cloud and AI revenue growth against tighter expense controls. After reporting Q3 results with 25% Azure revenue growth but rising operating costs, management has signaled continued discipline in hiring.
Investors should care because Microsoft's layered cuts illustrate the tension between funding AI and cloud initiatives and restraining labor expensescritical as Azure competes with Amazon (NASDAQ:AMZN) Web Services and Google (NASDAQ:GOOG) Cloud. Persistent headcount reductions may dampen morale and slow product development, even as they bolster near-term margins.
This article first appeared on GuruFocus.
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