Microsoft Lays Off 15,000 Amid AI Tech Boom

Microsoft has laid off over 15,000 employees in 2025, amounting to about 7% of its workforce, despite achieving record profits and investing heavily in artificial intelligence and cloud infrastructure. CEO Satya Nadella acknowledged the emotional impact of the layoffs, describing the paradox of financial success alongside workforce reductions and emphasizing the unpredictable nature of the tech industry. Nadella highlighted Microsoft's ongoing commitment to security, quality, and AI-driven transformation, urging employees to adopt a growth mindset. The company’s market performance and stock price have surged, fueled by investor confidence in its AI and cloud strategies. These layoffs are part of a wider trend, with more than 80,000 jobs cut across the tech sector in 2025 as companies adapt to an AI-first environment. Microsoft’s overall headcount remains relatively stable due to simultaneous hiring in growth areas.