Microsoft has warned employees that more changes are coming after announcing the latest round of job cuts. In a message sent to staff, EVP and Chief People Officer Amy Coleman said the company is changing the way it operates as technology and customer needs continue to evolve. She also confirmed that around 4,800 employees, or about 2.1 percent of Microsoft’s global workforce, are being laid off. Coleman said the decision was difficult and thanked the affected employees for their contributions.
“The people whose jobs are impacted today are our colleagues and friends. They have made meaningful contributions to Microsoft, and we are deeply grateful for everything they have done,” Coleman said.
She explained that Microsoft is changing because the technology industry is changing quickly. According to Coleman, customer needs, business models and the way work is done are all evolving.
“The ‘why’ is this: Our business is changing because the world around it is changing,” Coleman said. “Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it. That means we will need to adjust resources and roles and shift how we operate so we can have the greatest impact for our customers.”
Coleman also addressed concerns about AI. She said the latest layoffs are not happening because AI is replacing employees. But, she said AI is changing how work gets done. Some daily tasks can now be automated, which means employees will need to keep learning new skills and adapt to changing job requirements.
Also read: Xbox layoffs: Microsoft to cut 3200 jobs in biggest restructuring in company history
Coleman warned that the restructuring is not over. “We are still early on this journey, and there will be more changes ahead; other parts of our business will need to make similar changes,” she said.
The latest job cuts mainly affect Microsoft’s Commercial and Xbox divisions. Xbox CEO Asha Sharma revealed that the company plans to cut about 3,200 jobs in the Xbox division throughout FY27. Sharma also said that Xbox “business today is not healthy.”