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Reading: Microsoft cuts 42 more jobs in Redmond, continuing layoffs amid AI spending boom
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PhreeNews > Blog > World > Tech > Microsoft cuts 42 more jobs in Redmond, continuing layoffs amid AI spending boom
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Tech

Microsoft cuts 42 more jobs in Redmond, continuing layoffs amid AI spending boom

PhreeNews
Last updated: September 9, 2025 6:38 am
PhreeNews
Published: September 9, 2025
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Microsoft has laid of more than 15,000 people in recent months. (GeekWire File Photo / Todd Bishop)

Microsoft is laying off another 42 workers at its Redmond headquarters, according to a filing Monday, continuing a series of workforce reductions that have collectively impacted thousands of employees in recent months.

The ongoing trickle of smaller layoffs marks a departure from the traditional corporate mantra of “cut once, cut deep” — leaving some employees feeling nervous about whether their job will be next.

In a statement, a Microsoft spokesperson said organizational and workforce changes “are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”

The spokesperson did not disclose the types of positions impacted but confirmed that these are new cuts and described the overall impact as very small.

The notice brings the total number of Microsoft jobs cut in Washington state to more than 3,200 since May. It follows much larger rounds of 1,985 and 830 that took place in the state May and July, respectively. Globally, the company has laid off more than 15,000 people in the same period.

The cuts come as Microsoft spends record amounts on AI. CEO Satya Nadella addressed this conflict in a July 24 memo, calling the layoffs “among the most difficult we have to make” while acknowledging the “uncertainty and seeming incongruence” of the situation.

Despite the layoffs, the company is not shrinking. Microsoft’s global headcount held steady at 228,000 in its 2025 fiscal year, ending in June, according to its 10-K filing. The company continues to hire in key areas like AI while making targeted cuts elsewhere.

Across the tech sector, companies including Amazon, Google, and Meta have eliminated tens of thousands of jobs, citing pandemic-era over-hiring and a renewed focus on efficiency and strategic priorities like AI.

Microsoft said it offers support including severance benefits and outplacement services like career counseling and resume assistance. The company also noted that it helps employees seek new internal positions and that many are able to successfully move into other roles within Microsoft.

Updated at 2 p.m. Sept. 8 with Microsoft comment.

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TAGGED:boomcontinuingcutsJobslayoffsMicrosoftRedmondspending
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