Microsoft to cut 7,000 jobs in global restructuring
Layoffs affect employees across all levels, including dozens in Israel, as the company shifts its strategy for the AI era.
Microsoft revealed on Tuesday that it plans to eliminate roughly 3% of its workforce, affecting employees at various levels across its global operations. With a total headcount of 228,000 as of June, the reduction will impact an estimated 7,000 roles. Among those expected to be laid off are several dozen mid-level managers from Microsoft’s R&D hub in Israel, which employs around 3,000 people, according to industry estimates.
Full list of Israeli high-tech layoffs in 2025
In a statement provided to CNBC, a company spokesperson said, “We are making necessary organizational adjustments to position the company for long-term success in an evolving business environment.” The announcement follows strong quarterly financial results and a bullish forecast issued in late April.
This marks Microsoft’s most significant workforce reduction since January 2023, when 10,000 jobs were eliminated. While a smaller, performance-based round of cuts took place earlier this year, the company emphasized that the current layoffs are not linked to individual performance.
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According to the spokesperson, a key focus of the restructuring is to streamline Microsoft’s internal structure by reducing managerial layers and simplifying operations.
Microsoft CEO Satya Nadella addressed strategic changes in the company’s sales approach during a January earnings call, noting that Azure’s non-AI cloud revenue fell short of expectations. Meanwhile, AI-driven cloud services surpassed internal growth projections.
“In a time of major platform evolution, it’s critical to adapt,” Nadella said. “You have to align your go-to-market model with emerging capabilities and not just repeat what worked in the last cycle.”
