Microsoft has laid off more than 15,000 employees so far this year, with the most recent round in July affecting over 9,000 workers. The layoffs, carried out in phases, are being seen as a significant pivot point in the company’s history. Experts attribute the job cuts to the company’s ongoing restructuring and growing integration of artificial intelligence (AI) technologies.
Despite the large-scale layoffs, Microsoft’s share price crossed the \$500 mark for the first time on July 9, reflecting continued investor confidence. CEO Satya Nadella acknowledged the broad impact of the job cuts and confirmed they were part of a larger transformation driven by AI advancements.
Government tends to attract those who value job stability and security above all else. As this is probably the first time any one of them have been laid off, it's a larger hit to their psyche than it would be for those in private industry, where this happens all of the time.
— Dr. Swa (@dr_swa6) July 12, 2025
The layoffs are part of a broader trend in the global tech sector, which has seen over 80,000 job losses in 2025 alone.
Among other tech giants, Intel is also undergoing deep workforce reductions. The chipmaker is reportedly planning to eliminate more than 25,000 jobs due to financial challenges. Intel, which currently employs around 108,900 people, aims to significantly reduce its headcount by the end of the year. Since April, the company has already laid off around 15,000 employees—approximately 15% of its global workforce—marking a sharper cut than last year.
Industry analysts say these developments underscore a new era of technological transition, with companies rebalancing workforces in response to automation, AI-driven efficiencies, and cost optimization pressures.