Microsoft layoffs July 2025: Company set to fire more staff after sacking 6,000 in May - these positions to be affected

Microsoft is once again planning to reduce thousands of jobs in July as the technology giant continues restructuring along with huge AI investments, as per a report.

Microsoft Layoffs to Be Announced in July

According to Bloomberg, the company is expected to announce the layoffs by early next month, which would also mark the end of Microsoft's fiscal year and would start the new fiscal year.

These Roles to Be Affected Most

The firm's upcoming job elimination will mainly target the sales division and also other customer-facing roles, as per the report. The tech giant's sales and marketing division employs about 45,000 of Microsoft's 228,000 total workforce as of June 2024, according to Bloomberg.

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Shift to Third-Party Sales Providers

Microsoft had already indicated this shift in April, as the company had announced plans to use third-party firms to handle more software sales to small and midsized customers, according to the report.

Microsoft's Third Round of Job Cuts in 2025

The July layoffs will be the company's third major workforce reduction this year, following 6,000 job eliminations in May and more than 300 additional cuts just weeks later, as per Bloomberg. The previous rounds of job cuts had affected the roles of software engineers and product developers, according to the report.

Layoffs Align with Fiscal Year-End Pattern

The timing of the latest cuts shows that the technology giant follows a pattern, as Microsoft often announces organisational changes toward the end of its fiscal year, according to TOI. The IT firm had previously cut 10,000 positions in January 2023 after pandemic-driven hiring and made additional reductions to its video game division following the Activision Blizzard acquisition, reported TOI.

AI Investment Driving Restructuring

Microsoft's job reduction comes amid the broader challenge facing tech companies as they balance AI investments with operational efficiency, as per the report. The IT giant has allocated about $80 billion for data center spending this fiscal year, while executives have pledged to Wall Street to control costs in other areas, reported TOI.

FAQs

Is Microsoft laying off more employees again?
Yes. Microsoft is planning to cut thousands of jobs in July 2025, marking the third major round of layoffs this year, as per Bloomberg report.

Who will be most affected by the layoffs?
Sales and customer-facing teams will be hit hardest, though other roles may be affected too, according to the Bloomberg report.