Microsoft has laid off 830 employees across its home state of Washington, as part of a broader global downsizing affecting approximately 9,000 workers. The move, aimed at reducing redundancies and shifting focus to more strategic priorities, was first reported by CNBC on 3 July, citing internal company filings and a source familiar with the matter.
The layoffs impact a wide array of roles across multiple business units. According to a document Microsoft submitted to Washington state employment officials, affected employees include nearly a dozen game design professionals, three audio designers, two mechanical engineers, one optical engineer, and one lab technician. The Microsoft Research division was also hit, with five individual contributors and one manager among those made redundant.
Further job losses occurred in the company’s legal and hardware divisions, with 10 lawyers and six hardware engineers laid off, according to the filing seen by CNBC. A government affairs staffer based in Washington was also among those let go.
In its report, CNBC quoted an unnamed source familiar with Microsoft’s internal plans who said the company aimed to eliminate overlapping roles and encourage employees to embrace new technologies and work in more impactful ways. While the source declined to be named due to the private nature of the discussion, the insights underscore a wider restructuring underway at the company.
The job cuts come amid an ongoing shift in Microsoft’s business priorities. In the sales division, the company laid off 16 customer success account managers, 28 staff in sales strategy enablement, and five employees in sales compensation, according to the same state filing. Meanwhile, 17 roles in cloud solution architecture—a key area of growth for Microsoft—were also eliminated in Washington.
These cuts raise eyebrows as they affect parts of the business tied to Microsoft’s most lucrative segment: cloud computing. The company’s Azure and cloud services division has been its fastest-growing area, with revenue driven largely by usage-based customer spending. Despite this momentum, the company appears to be tightening resources, perhaps in an effort to improve profit margins amid economic uncertainty.
Microsoft has not issued a public statement regarding the layoffs in Washington. Chief Executive Officer Satya Nadella has remained silent on the cuts, and the company did not immediately respond to CNBC’s request for comment. However, during Microsoft’s quarterly earnings call in April, Chief Financial Officer Amy Hood stated that the company had placed a “focus on cost efficiencies” during the March quarter—a signal of the financial discipline shaping the firm’s current strategy.
Social media platforms have since seen an outpouring of posts from former Microsoft employees, particularly video game developers and sales personnel, announcing their departures. The cuts come just months after Microsoft reported that Xbox content and services revenue grew by 8%, which was notably below the company’s overall revenue growth of 13%, as highlighted by CNBC.
Although the layoffs affect only a fraction of Microsoft’s global workforce—which exceeded 220,000 employees at last count—they reflect a broader trend in the technology sector. Major firms are reevaluating resource allocation, particularly in areas where automation, AI, or platform efficiencies can offset human labour.
