Microsoft Just Laid Off 9,000 People, Happy Independence Day?

While you're out enjoying fireworks, freedom, and figuring out if that’s your 4th or 5th hot dog… Microsoft just handed out 9,000 pink slips like they were party favors.

Yep. On July 2nd, right before their new fiscal year kicked off, they laid off about 4% of their global workforce. That’s their third major layoff in 2025. First in January, then in May (6,000 more), then June (another 600). Now July’s here and boom another round.

Honestly, if Microsoft were a person, they’d be that friend who keeps saying “I’m making changes,” and then ghosts half their contact list.


Who got hit this time?

Pretty much everyone:

• Sales? Slashed.
• Management? Snipped.
• Engineering? Yep.
• Xbox? Painfully, yes.

Even gaming studios like King and ZeniMax got shuttered, and fan-favorite titles like Everwild and Perfect Dark? Canceled like a reality show in season one.

Phil Spencer (aka Xbox Boss) said the layoffs are meant to “simplify management.” Translation: too many cooks in the Xbox kitchen, not enough devs cooking up actual games.


So, What’s the Deal?

Microsoft is all in on AI. Like, $80 billion this year alone kind of in.

They don’t just want salespeople anymore, they want techies. People who can explain the AI magic, not just hand over a PowerPoint and a smile.

So, they're: Cutting layers of middle management and reorganizing sales into three buckets:

• AI business tools
• Cloud & AI platforms
• Security

This isn’t downsizing for the sake of saving pennies, it’s a full-on pivot to become a sleeker, faster, more AI-powered beast.


But Wait… Aren’t They Rich?

Oh yeah, they’re doing just fine, financially speaking; $70 billion in revenue and $26 billion in profit. That’s not “we can’t afford this” energy. That’s “we’re moving in a new direction, sorry if you’re not on the bus” energy.


So Now What?

If you're in tech, it’s time for some real talk: Are you learning how to work with AI tools like Microsoft Copilot, or are you pretending this is all just a phase like Crocs and fidget spinners?

Analysts say this isn’t about robots taking over, it’s about companies putting their money where the future is. And that future? It speaks Python, knows prompt engineering, and doesn’t need coffee breaks.

Are you free from getting replaced by AI… or just hoping you are?

Enjoy the fireworks, celebrate freedom, but also maybe… open a YouTube tab on machine learning when you get home.

Reply to this email and let me know what you think about this, I’m all ears.