[News] Microsoft Reportedly Lays Off Hundreds More, Adding to May’s 6,000 Cuts

Microsoft has reportedly initiated another round of layoffs just weeks after announcing its largest workforce reduction in years, Bloomberg notes. The move underscores the tech sector’s ongoing efforts to cut costs despite pouring significant investments into AI, according to the report.

A notice filed in Washington state and reviewed by Bloomberg shows that more than 300 employees were informed on June 2 that their positions had been eliminated. A Microsoft spokesperson said that these layoffs are in addition to the 6,000 job cuts announced in May, Bloomberg adds.

Meanwhile, although it remains unclear which positions were affected in the June 2 layoffs, Bloomberg notes that Microsoft’s earlier cuts primarily targeted software engineers.

The Register notes that this marks Microsoft’s third round of layoffs in 2025. In addition to a three percent workforce reduction earlier in May, the company also let go of employees in January, as indicated by The Register.

While implementing layoffs, Microsoft continues to ramp up its AI investments. According to Reuters, the company’s capital expenditures surged 53% to USD 21.4 billion in the third quarter ending in March. CFO Amy Hood stated that capital spending will continue to grow in fiscal 2026, which begins in July, but at a more moderate pace.

Broader Wave of Tech Job Cuts Continues

Microsoft isn’t the only major tech firm to announce recent layoffs. In May, Google reportedly eliminated around 200 positions within its global business organization—which handles sales and partnerships, according to Reuters, citing The Information. As Reuters notes, major tech companies have been shifting their spending priorities toward data centers and AI development, while pulling back on investments in other areas.

Also in May, Amazon began cutting around 100 roles within its devices and services division, according to CNBC.

In addition, TikTok instructed its U.S. e-commerce staff to work from home on May 21 while awaiting emails about “difficult decisions,” a move that suggests the company is preparing for job cuts, as noted by Bloomberg.

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(Photo credit: Microsoft)