What many feared is confirmed: Microsoft cuts 3% of its workforce due to AI.

Last update: 19/05/2025

  • Microsoft is implementing a 3% reduction in its workforce, equivalent to approximately 7.000 employees globally.
  • The cuts extend to all levels and geographies, with a clear commitment to simplifying the management structure.
  • The decision is motivated by the need to adapt to an increasingly competitive market and invest in artificial intelligence.
  • The layoffs come after a year of strong financial results and follow the current trend in the technology sector.
Microsoft replaces staff with AI

During the first weeks of May 2025, Microsoft announced one of the most significant decisions for its employees in recent years: The company will carry out a 3% cut in its workforce worldwide.This measure, which involves the departure of approximately 7.000 workers from different areas and locations, is presented as part of an internal strategy aimed at improving the company's agility and efficiency in a technological environment marked by constant changes and competitive challenges.

Although the figure may seem small in relative terms, The impact is significant considering that Microsoft's global workforce exceeds 228.000 employees worldwide.The reduction affects both rank-and-file workers and those in management positions, with the latter group being one of the main targets of the adjustment.

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Restructuring and commitment to artificial intelligence

Microsoft People 2025 What's New

The Redmond-based company has made it clear that These changes are motivated by the search for a more dynamic and less hierarchical structure., in which intermediate levels of management are reduced. The goal is to gain agility, better respond to market demands and promote high-performance teams., all within the context of the intensification of the investment in artificial intelligence and new technologies, sectors in which competition has intensified in recent months.

According to official Microsoft sources and specialized media, The decision does not respond to questions of individual employee performance, thus differentiating itself from previous rounds of layoffs, such as the one carried out in January of this year, which was motivated by performance criteria.

An economic environment with uncertainty and increasing competition

Microsoft Template

The context in which these layoffs are occurring is not unrelated to the actions of other major technology companies. Microsoft is committed to adjusting its costs and becoming more flexible. just after having presented financial results above forecasts, especially in relation to its cloud computing services, such as Azure.

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This behavior is in line with the decisions taken by other companies in the sector, which They have also reduced staff while increasing their commitment to artificial intelligence., thus seeking to preserve margins and maintain a high pace of innovation.

The company, which celebrated its 2025th anniversary in 50, also faces additional challenges such as the tightening of antitrust regulations and the impact of international tariffs, factors that have driven management to look for ways to optimize resources and simplify organizational structures.

The precedent of the pandemic and the future of the company

Microsoft-AI

Industry experts point out that some of these cuts have their origin in the overbooking that occurred during the pandemic, when many technology companies significantly increased their workforces to meet the growing demand for digital services. Now, with the return to a more stable environment and the pressure to maintain profitability, Microsoft follows the path of other major technology companies by adjusting its structure and directing resources toward strategic areas such as artificial intelligence.

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As for the reaction of the markets, The announcement has not resulted in major changes in the stock price., demonstrating that investors had already expected adjustments following the period of expansion experienced in previous years and have confidence in the company's long-term strategy.

These movements demonstrate the rapid evolution of the technology sector and the need for large companies to adapt in order to remain leaders in innovation. Although the layoff figures are high in absolute terms, Microsoft continues to maintain its market position and prioritize investments in artificial intelligence and emerging technologies, with the goal of consolidating its leadership in the coming years.

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