Microsoft has initiated another round of layoffs in Washington state, trimming 40 more jobs and pushing the total number of in-state reductions to 3,160 since May, based on a recent filing with state regulators.
While smaller than the large-scale cuts made earlier this year—1,985 jobs in May and 830 in July—these fresh reductions mark a continuation of the tech giant’s broader restructuring efforts. In total, Microsoft has laid off more than 15,000 employees globally since the start of this initiative.
A company spokesperson explained that such workforce adjustments are “a necessary and regular part of managing our business,” emphasizing that Microsoft remains focused on “investing in strategic growth areas that support our customers and partners.” The company did not share specifics regarding which departments or locations were most affected in this latest round.
Employees impacted by the cuts are receiving severance packages along with support services, including career counseling and help with job searches. Microsoft also mentioned that some affected workers have already transitioned into different roles within the company.
The layoffs come at a time when Microsoft is spending aggressively on artificial intelligence infrastructure—more than $30 billion this quarter alone. This surge in capital investment, aimed at scaling up AI training and deployment capacity, has simultaneously increased pressure to reduce operating costs, resulting in deeper workforce reductions.
Inside the company, the juxtaposition of major spending with widespread job losses has sparked unease. Some employees have raised concerns over growing job insecurity and what they perceive as a shift away from the empathetic workplace culture that CEO Satya Nadella has long promoted.
In a memo sent to all staff on July 24, Nadella addressed what he described as the “uncertainty and seeming incongruence” of pursuing massive investments in AI while also implementing layoffs. He called the decisions “among the most difficult we have to make.”
Despite the restructuring, Microsoft’s global workforce has remained steady at 228,000 over the past year, according to its annual 10-K filing. Hiring efforts in key growth areas continue, even as some divisions undergo downsizing.
Last week, the tech powerhouse briefly touched a market valuation of $4 trillion following a strong earnings report, becoming only the second company in history to reach that milestone. On Monday, shares closed up 2.2%, with Microsoft’s valuation hovering just under the $4 trillion mark.
