News
Microsoft Reportedly Cuts 300 Jobs
Source: verdict.co.uk
Published on June 3, 2025
Microsoft Announces Additional Job Cuts Amid Market Adaptation
Microsoft has announced additional job cuts, impacting over 300 employees, as part of its ongoing efforts to manage costs and adapt to the dynamic marketplace. This move comes as the tech giant continues to navigate the challenges and opportunities presented by the AI boom, which has significantly influenced the tech labour market.
The recent reduction in workforce is part of Microsoft’s strategy to position itself for success in a rapidly evolving market. A company spokesperson stated, 'We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace.' These layoffs follow previous job cuts announced in May 2025, where the company reduced its global workforce by about 3%, affecting around 6,000 employees across various levels and regions.
Impact of the AI Boom on the Tech Labour Market
The AI boom has had a profound impact on the tech labour market, with companies prioritising AI-focused roles and leveraging AI technology to enhance efficiency and reduce costs. Microsoft, along with other tech giants like Meta Platforms, has highlighted the benefits of AI-assisted coding tools in expediting software development. However, the specific roles impacted in the latest round of layoffs remain unclear, though previous layoffs primarily affected software engineers.
Microsoft’s Workforce and Organisational Changes
As of June 2024, Microsoft employed approximately 228,000 full-time employees, with 55% based in the US. The company has been implementing organisational changes to adapt to the rapidly evolving market. Earlier in June 2025, reports surfaced of Microsoft Rus, the company’s subsidiary in Russia, filing for bankruptcy. This followed statements against foreign service providers acting against Russian interests made by Russian President Vladimir Putin.
Industry-Wide Layoffs and Cost Management
Microsoft is not alone in its efforts to manage costs and streamline operations. In May 2025, Amazon reduced around 100 roles within its devices and services unit, which is responsible for developing products such as the Alexa voice assistant and Kindle e-reader. In April, Intel announced plans to reduce its workforce by more than 20%, as part of its new CEO Lip-Bu Tan’s strategy to streamline management and revitalise the company’s engineering-driven culture.
Conclusion: Adapting to a Changing Market
The recent job cuts at Microsoft reflect the company’s ongoing efforts to adapt to a changing market influenced by the AI boom. As the tech industry continues to evolve, companies are prioritising AI-focused roles and leveraging AI technology to enhance efficiency and reduce costs. Microsoft’s organisational changes and workforce reductions are part of a broader strategy to position itself for success in a dynamic and competitive marketplace.