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Microsoft has announced plans to eliminate approximately 6000 employees from its global workforce which represents about 3% of its total staff while maintaining profitable results throughout the last four quarters. Microsoft initiated this organizational change to enhance its operational speed and reduce managerial structures throughout its operations. The company has not provided official confirmation about the exact number of employees affected but the layoffs represent a substantial portion of its 228,000 workers from June 2024. The layoffs affect 55% of positions based in the U.S. and will touch different departments and locations worldwide. The company stated its intention to adapt to modern technological challenges through this organizational transformation. The company made this decision after a smaller performance-based reduction in January and it represents the largest job cut since the 10,000 role elimination in early 2023 during the industry-wide job market reduction. The company made these workforce reductions after achieving better-than-expected earnings results during the first quarter of 2025. During the April earnings call CFO Amy Hood explained that the company had added staff during the previous year but now focuses on operational streamlining through manager reduction. Microsoft faces market competition pressure which led the company to adopt a strategic shift toward leaner teams with faster execution instead of pursuing headcount expansion.

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