Bill Gates-founded tech giant Microsoft is planning a huge round of layoffs from its global workforce this Summer.
The company reported it is planning to slash approximately 3 percent of its global workforce.
Those cuts include 1,985 workers in Washington State.
The jobs cull in the state was revealed by Employment Security Department data.
Microsoft stated the cuts are not related to performance, however.
Instead, they are part of an effort to reduce layers of management.
As of last June, Microsoft had 228,000 employees worldwide.
While unconfirmed, this is gearing up to be the company’s biggest round of layoffs since 2023.
In 2023, Microsoft let 10,000 employees go.
In a statement to CNBC, a Microsoft spokesperson said:
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.”
There is no word on when the new layoffs will officially take place.
On Monday, Microsoft shares stopped trading at $449.26.
It marked the highest share price for the company in 2025.
Last July, Microsoft closed at a record $467.56.
Microsoft also produced better-than-expected results in its quarterly report last month.
This announcement follows another company, CrowdStrike, a cybersecurity software provider.
Last week, CrowdStrike decided to lay off 5% of its workforce.
After 10 consecutive quarters of increasing its spending on artificial intelligence (AI), Microsoft decided to slightly pull back its financial commitment to the burgeoning technology last month.
According to a financial results report released earlier this week, Microsoft spent approximately $1 billion less on AI in the first three months of 2025 than it did in the previous quarter.
Still, Microsoft invested $21.4 billion into AI over the past three months.
Microsoft was on pace to spend more than $85 billion on AI during the current fiscal year, before slightly pulling back.
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