Microsoft laying off more than 6000 people, about three percent of its workforce

Microsoft Layoffs 2025

The Microsoft layoffs 2025 came with devastating news to thousands of their employees. Some of which were critical assets for Microsoft. There are no clear reasons as to why Microsoft took this extreme step. But we know for sure that the top corporate executives are planning a major change in the company policy. 

Scale of Microsoft layoffs 2025

The Scale of Microsoft layoffs 2025 is huge, the three percent reduction is aimed at saving more than 1.5 billion dollars for Microsoft. 

The most notable individual among the layoff is a guy named Ron Buckton, who is working on the Typescript language. While he made the typescript more than 10 times faster. Still, he got fired by the company despite more than 18 years of experience. Many more talented individuals were cut off from most of the teams. 

Reasons for Microsoft layoffs 2025

There is no apparent reason for Microsoft’s layoff in 2025, as there was no press release or any statement from Microsoft. All the information we have is from the news outlets or the employees sharing their experiences. 

• AI: Microsoft, like every other big tech, is racing towards the AI product; it’s more likely that these layoffs came with the recent shift towards novel AI products. 
• Straightening corporate structure: Microsoft, like other big techs, wants to reduce the number of managers working in the middle layer. As evident in the firing where a significant number of managers were fired than engineers.  This, according to them, will streamline decision-making and make communication with the top corporate layer clear.
• Economics: Microsoft has recorded a substantial reduction in its profit, especially in the case of Azure cloud services. Where it fell from the 72+% profit was reduced to less than 69%. This, along with other services performing poorly, may have prompted these Microsoft layoffs. 

Impact

We can see a great overall impact on Microsoft as a company

Employees: Sudden layoffs had sent chills across the job market. With even the most skilled programmers shown the exit gate by Microsoft rest of the employees will not be happy with them. 

Most recent graduates and freshers will try to move towards startups or other companies with job security,, while avoiding Microsoft. 

Customer: The firing of managers will be bad for the B2B and B2C services of Microsoft. They used to be a bridge between Engineers and business customers. We are likely to see a great deak of decline in the Customer Service. 

Funds: These layoffs will significantly reduce the spending by almost $1.4 billion estimated. Microsoft will divert the funding toward more ambitious programs like AI. 

More layoffs coming?

As the trend is going with the company, we can see more Microsoft firings in the future. With the addition of new AI products in the plans of Microsoft there will be more incoming layoffs in the future. 

Microsoft is going the way of other big techs, where even slight inefficiency is letting people get fired. Also, the focus is on hiring more engineers than Managers. 

FInal verdict

Microsoft layoff 2025 came in a of unfortunate events. Where more than 6500 employees are fired, even those who can be considered highly critical. There is no official reason yet, but we can deduce from the recent activity that the push towards AI and low profits are culprits. Expect more layoffs in the future as they will try to boost their overall profit. All tech guys must understand that even standing on the pinnacle of their field is not enough. Hence, they should upskill and try to incorporate AI in their skill set. 

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