The Blubber

Microsoft announced on Tuesday that it is laying off approximately 3% of its global workforce, impacting employees across various departments, levels, and regions. The move will affect around 6,000 workers.

“As we adapt to a fast-evolving market landscape, we’re continuing to make organizational adjustments that align with our strategic goals,” a company representative told CNBC.

The job cuts come despite Microsoft’s strong financial performance. The company posted a quarterly net income of $25.8 billion and issued a positive outlook during its earnings report in late April.

As of the end of June, Microsoft employed 228,000 people worldwide. According to filings from Washington state, 1,985 of the impacted roles are tied to its Redmond headquarters, with 1,510 of those being in-office positions.

This marks one of Microsoft’s most significant layoffs since 2023, when it cut 10,000 roles. A smaller round of performance-based layoffs occurred in January, but the current reductions are not tied to employee performance, the company said.

Last week, cybersecurity firm CrowdStrike also disclosed plans to reduce its workforce by 5%.

Earlier this year, CEO Satya Nadella mentioned to analysts that Microsoft would be revising its sales strategy after slower-than-expected growth in Azure’s non-AI cloud revenue. Meanwhile, AI-related cloud services exceeded internal forecasts.

“At moments of technological transition, it’s essential to rethink market approaches and align incentives with new platform opportunities,” Nadella said. “You have to lean into what’s next, not just repeat what worked before.”

On Monday, Microsoft’s stock closed at $449.26 — its highest level this year. Its record close remains $467.56, reached in July of last year.