Microsoft Corporation is an American multinational corporation and technology company having its headquarters in Redmond, Washington.It was founded in 1975, Microsoft became influential in the rise of personal
Microsoft Corporation is an American multinational corporation and technology company having its headquarters in Redmond, Washington.It was founded in 1975, Microsoft became influential in the rise of personal computers through software like Windows. The company has expanded to Internet services, cloud computing, video gaming, and other fields. Microsoft is the largest software making company, one of the most valuable public U.S. companies, and one of the most valuable brands all around the world.
Bill Gates and Paul Allen are the founders of Microsoft and currently, the CEO of Microsoft Corporation is Satya Nadella. Bill Gates and Paul Allen founded Microsoft to develop and sell BASIC interpreter,
an interpreter that enables users to enter and run programs in the BASIC language and was, for the first part of the microcomputer era, the default application that computers would launch. Users were expected to use the BASIC interpreter to type in programs or to load programs from storage.
It rose its domination on the personal computer operating system market with MS-DOS in the mid-1980s, followed by Windows. During the 41 years from 1980 to 2021 Microsoft had released 9 versions of MS-DOS with a median frequency of 2 years, and 13 versions of Windows with a median frequency of 3 years.
Microsoft is one of the few companies with a market capitalisation over $2 trillion.Consistently reports strong earnings and high-profit margins.
On 13 may 2025 Microsoft announced, a significant workforce reduction, laying off almost 6,000 employees, which contains about 3% of its global staff. This move is part of the company’s broader strategy to streamline operations and intensify its focus on artificial intelligence (AI) and cloud computing . This layoff is not for the first time
Microsoft’s most significant layoff occurred in July 2014, when the company announced plans to cut 18,000 jobs, representing approximately 14% of its workforce at the time. In more recent years, Microsoft has continued to adjust its workforce in response to strategic shifts like in January 2023 ,2024.
The layoffs affect employees across various departments, including LinkedIn, Xbox, and international offices. Companies in Washington State eliminated around 1,985 positions, primarily in software engineering and product management roles.
Microsoft is targeting middle management and non-coding roles to reduce organizational layers and enhance agility. The company aims to increase the ratio of engineers to managers, thereby boosting operational efficiency .
Despite strong financial performance, Microsoft is investing heavily in AI infrastructure, with plans to allocate $80 billion this fiscal year. This substantial investment is influencing decisions to optimize resources and manage costs effectively .
The use of algorithms to determine layoffs has sparked criticism. An algorithm laid off a 25-year Microsoft veteran, as highlighted by a viral account, raising concerns about the impersonal nature of such decisions.
Like Amazon and Burberry announcing significant job cuts, Microsoft’s layoffs are also part of this wider trend in the tech industry. These actions reflect a shift towards leaner operations and a heightened emphasis on profitability amidst evolving market conditions .
While the company has not disclosed specific severance details, Microsoft has previously included severance pay, continued healthcare coverage, and career transition services in past layoffs. The company has not confirmed if similar support will be provided in this round of layoffs .
Company’s decision to lay off 6,000 employees is not just about cutting costs ,it is a strategic move to
redistribute resources and talent toward technologies. Microsoft is shifting its resources and energy into Artificial Intelligence (AI) and cloud computing. Which are fast-growing and high-profit sectors , which includes adding AI into products like Microsoft 365 and investing in platforms like Azure (cloud service)which the company sees as the future of its growth. While doing so, it must also manage the internal and external challenges. That come with reducing its workforce because laying off employees is not easy, it comes with internal disruptions, emotional impact, and potential damage to reputation.Despite these difficulties, Microsoft is choosing to make tough decisions to align with its long-term priorities.
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The layoffs impact multiple departments, including roles in Engineering,Product management,Xbox and LinkedIn divisions,International teams.
The layoffs are global, though a large number of cuts (~1,985 roles) occurred in Washington State, USA.
No. Microsoft has conducted multiple rounds of layoffs in recent years, including:10,000 jobs cut in January 2023,1900 jobs cut in its gaming division in 2024 and 18,000 jobs in 2014, the largest in its history.
No. Microsoft remains financially strong, with solid earnings. The layoffs are driven by a shift in business priorities, not financial losses.
In part, yes. As Microsoft invests more in AI automation and infrastructure, some roles, particularly in middle management and non-technical areas, are being reduced.
While exact details haven’t been disclosed, Microsoft has historically offered severance pay,health benefits extension,career transition services
