Microsoft Continues Layoffs in Washington State Amid AI Investment Surge

Microsoft cuts another 40 jobs in Washington state, continuing layoffs amid AI investment surge

Microsoft laid off another 40 employees in Washington, bringing the total number of job cuts in its home state to 3,160 since May, according to a public filing. These latest cuts are on a much smaller scale than those made by Microsoft in May and July, when it eliminated 1,985 and 830 positions in the state, respectively, as part of broader layoffs that impacted more than 15,000 people globally. Microsoft confirmed that these cuts are separate from the prior reductions. The company declined to provide details about the teams, roles, or regions impacted. "Organizational and workforce changes are a necessary and regular part of managing our business," a Microsoft spokesperson said in a statement. "We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners." The company said it is providing severance packages and outplacement services to affected employees, including career counseling and job search support. Microsoft noted that some laid-off workers have transitioned to other roles at the company. The layoffs coincide with record capital spending on AI infrastructure, with the company investing more than $30 billion this quarter alone, in part to expand capacity for training and running AI models. Rising capital expenditures have created pressure to reduce operating costs through workforce reductions. The ongoing layoffs have created tension inside Microsoft's workplace culture, with some employees expressing concern about job insecurity and what some see as an erosion of the more compassionate environment under CEO Satya Nadella. In a company-wide memo July 24, Nadella acknowledged the "uncertainty and seeming incongruence" of cutting jobs while simultaneously making record investments in AI infrastructure, calling the layoff decisions "among the most difficult we have to make." Microsoft's global headcount held steady at 228,000 over the past year, according to its annual 10-K filing. That reflected an initial round of layoffs in May, prior to larger cutbacks in July, even as the company continues to hire in some areas. The company briefly surpassed a $4 trillion market value after a blockbuster earnings report last week, becoming only the second company to reach that mark. Its stock closed Monday up 2.2%, at a market value of $3.98 trillion.

Microsoft lays off dozens of WA workers

Microsoft is laying off 40 Washington-based employees, as the company continues to trim its workforce amid record spending on artificial intelligence. It's unclear if Monday's layoffs, disclosed in a state filing, were part of previous announcements. The company announced in May that it was letting go of more than 6,000 workers and made another announcement in July for an additional 9,000 employees. In Washington, Microsoft has announced 3,160 job cuts so far this year, including Monday's layoffs. Microsoft did not immediately respond to a request for comment. The company is continuing a run of one of the largest layoffs in its history while reporting record quarterly revenues and profits. Last week, Microsoft's fiscal year earnings stunned Wall Street, especially for its cloud and AI business. Microsoft reported last week that it invested $88 billion over the past year to build out its AI infrastructure and plans to spend another $30 billion by the end of September. Microsoft CEO Satya Nadella addressed this "incongruence" in a memo to employees last month. "This is the enigma of success in an industry that has no franchise value," he said. "Progress isn't linear. It's dynamic, sometimes dissonant, and always demanding." Despite the waves of layoffs, Microsoft's head count is relatively unchanged, Nadella said, as the company prioritizes hiring in other parts of its business. Microsoft reported that it had 228,000 employees at the end of June, the same number that it reported last year. This is a developing story and may be updated.

Microsoft layoffs mount as it cuts 40 jobs - 3,160 fired in Washington since May, employees call it a cultural crisis

Microsoft layoffs Washington 2025: Microsoft has cut another 40 jobs in Washington state, bringing the total number of layoffs in its headquarters' state to 3,160 this year, as per a report. The latest cuts, disclosed Monday in a state filing, are part of ongoing workforce reductions even as the company reports record profits and massive investments in artificial intelligence, according to The Seattle Times report. Monday's layoffs were small compared to the company's other major job cuts announced in May and July, totaling more than 15,000 employees globally, as per the report. Microsoft had revealed in May that it was laying off over 6,000 workers and made another announcement in July for an additional 9,000 employees, as reported by The Seattle Times. However, the firm confirmed that the latest layoffs are separate from the previous cuts, but the company declined to provide details about the teams, roles, or regions impacted, as reported by Geekwire. A Microsoft spokesperson said in an emailed statement to The Seattle Times that, "Organizational and workforce changes are a necessary and regular part of managing our business," adding, "We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners," as quoted in the report. ALSO READ: Intel stock falls after Donald Trump calls for CEO Lip-Bu Tan to resign over China ties While the firm said that it is giving severance packages and outplacement services to affected workers, along with career counseling and job search support, according to Geekwire. Microsoft also highlighted that some laid-off employees have transitioned to other roles within the company, as per the report. Despite continuing one of the largest layoffs in Microsoft's history, the tech giant has reported record quarterly revenues and profits, with Microsoft's fiscal year earnings stunning Wall Street, especially for its cloud and AI business, as reported by The Seattle Times. Microsoft had briefly even surpassed a $4 trillion market value after the strong earnings report last week, becoming only the second company to reach that mark, but then its stock closed Monday up 2.2%, at a market value of $3.98 trillion, as per The Seattle Times report. The company revealed last week that it invested $88 billion over the past year to create its AI infrastructure and plans to spend another $30 billion in the third quarter, according to the report. These increasing capital expenditures have put pressure to cut operating costs via workforce reductions, as reported by Geekwire. ALSO READ: Eli Lilly Q2 earnings beat expectations on Mounjaro, Zepbound sales, stock falls after obesity drug trial miss While the ongoing layoffs have caused widespread tension inside Microsoft's workplace culture, with some employees expressing concern about job insecurity and what some see as an erosion of the more compassionate environment under CEO Satya Nadella, according to the Geekwire report. Even Nadella had addressed this "incongruence" in a memo to employees last month, saying, "This is the enigma of success in an industry that has no franchise value," adding, "Progress isn't linear. It's dynamic, sometimes dissonant, and always demanding," as quoted in The Seattle Times report. ALSO READ: Is Google's AI revolution a threat to website traffic for digital publishers? Here are strategies to stay ahead However, even after the waves of layoffs in the company, Microsoft's headcount has remained steady, as Nadella said that the firm prioritises hiring in other parts of its business, as per the report. Microsoft said that it had 228,000 employees at the end of June this year, which is the same number that it reported last year, according to The Seattle Times report. ALSO READ: As the July jobs report paints a grim picture, 114 companies plan layoffs in August - is yours on the list? Why is Microsoft laying off employees while making record profits? Despite strong earnings, Microsoft is shifting resources toward AI and cloud infrastructure, which has led to workforce reductions in other areas to manage costs, as per the Geekwire report. Is Microsoft offering support to laid-off employees? Yes. The company says it's offering severance, outplacement services, career counseling, and some internal reassignments, as per the Geekwire report.