Microsoft is set to lay off 3% of its workforce across all teams, regions, and levels, the company announced on Tuesday, according to CNBC.

“We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace,” a spokesperson from the company said in a statement to the US news outlet.

In its end of June reporting last year, Microsoft had 228,000 employees in its global operations, with a 3% layoff rate set to affect thousands of workers.

Microsoft joined a scourge of tech firms cutting workers in an effort to cut costs in 2023, eliminating 10,00 roles. The company also announced a smaller round of cuts in January which the company said were based around performance, amounting to 2,280 workers cut from the company.

The new round of Microsoft layoffs, however, were not performance-related, but rather motivated partially to reduce management layers, a spokesperson said, as reported by CNBC.

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While performance in AI cloud did outdo internal projections, Microsoft CEO Satya Nadella said in January that the company would make changes in their sales execution strategy that would lead to lower-than-projected growth in the firm’s cloud revenue outside of AI.

“How do you really tweak the incentives, go-to-market?” the CEO said at the time to analysts. “At a time of platform shifts, you kind of want to make sure you lean into even the new design wins, and you just don’t keep doing the stuff that you did in the previous generation.”

Microsoft’s shares this week closed on Monday at the highest price of the year so far, at $449.26, a bit shy of their record $467.56.

2025 tech layoff show no sign of slowing down from 2023 and 2024 trends, as economic undulation and the global trade debacle create new drivers for companies attempting to cut costs.