Microsoft has carried out another round of layoffs, letting go of around 40 employees based in Washington. Although smaller in scale compared to earlier rounds, these latest cuts span across various departments of the company. The layoffs were disclosed through a state filing and come at a time when Microsoft is investing significantly in artificial intelligence technologies.
This is separate from the company’s earlier announcements in May and July, when it laid off over 6,000 and 9,000 employees respectively. With the latest round included, Microsoft has now cut close to 3,200 jobs in Washington alone this year.
A company spokesperson stated that organisational and workforce changes are a regular part of managing the business. “We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners,” the spokesperson said, according to a local report.
Despite these cuts, Microsoft reported strong financial results for the May to June quarter. The company posted $76.4 billion in revenue and $27.2 billion in profit, marking its highest year-over-year growth in more than two years. These record-breaking profits came shortly after announcing historic layoffs.
Following the job cuts in July, CEO Satya Nadella acknowledged the emotional weight of the decision in a memo that later became public. He mentioned the “uncertainty and seeming incongruence” surrounding the changes while pointing to the ongoing technological shift in the industry.
Microsoft has now laid off more than 15,000 employees in 2025, making this its second-largest workforce reduction since 2014, when the company let go of around 18,000 employees.
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