Microsoft has confirmed a significant wave of global job cuts, impacting as many as 9,000 workers across various divisions, including its Xbox video gaming unit. These layoffs constitute approximately 4% of Microsoft's 228,000-strong global workforce and are part of several rounds of redundancies initiated in 2025. Previous cuts this year included fewer than 1% of staff in January, over 6,000 jobs in May, and 300 more in June, bringing the total for July's wave to around 8,777 positions. Locations affected include major Microsoft hubs in Redmond and Bellevue in Washington state, and some roles in Ireland.

These extensive layoffs come at a time when Microsoft is experiencing historic financial success. The company holds the position of the second-most valuable in the world with a market capitalization of $3.65 trillion. In its most recent fiscal quarter, Microsoft announced an 18% jump in net income to $25.8 billion and a 13% increase in revenue to $70.1 billion. Despite this robust financial performance and profitability, the company stated it is undergoing