Microsoft began laying off about 6,000 workers Tuesday, nearly 3% of its entire workforce and its largest job cuts in more than two years as the company spends heavily on artificial intelligence.
Hard hit was the tech giant's home state of Washington, where Microsoft informed state officials it was cutting 1,985 workers tied to its Redmond headquarters, many of them in software engineering and product management roles.
Microsoft said the layoffs will be across all levels, teams and geographies but the cuts will focus on reducing the number of managers. Notices to employees began going out on Tuesday.
The mass layoffs come just weeks after Microsoft reported strong sales and profits that beat Wall Street expectations for the January-March quarter, which investors took as a dose of relief during a turbulent time for the tech sector and U.S. economy.
“I think many people have this conception of layoffs as something that struggling companies have to do to save themselves, which is one reason for layoffs but it’s not the only reason,” said Daniel Zhao, lead economist at workplace reviews site Glassdoor. “Big tech companies have trimmed their workforces as they rearrange their strategies and pull back from the more aggressive hiring that they did during the early post-pandemic years.”
Microsoft employed 228,000 full-time workers as of last June, the last time it reported its annual headcount. About 55% of those workers were in the U.S.
Microsoft announced a smaller round of performance-based layoffs in January. But the 3% cuts will be Microsoft's biggest since early 2023, when the company cut 10,000 workers, almost 5% of its workforce, joining other tech companies that were scaling back their pandemic-era expansions.
Microsoft's chief financial officer, Amy Hood, said on an April earnings call that the company was focused on “building high-performing teams and increasing our agility by reducing layers with fewer managers.” She also said the headcount in March was 2% higher than a year earlier, and down slightly compared to the end of last year.
The layoffs are hitting all parts of Microsoft's business, including the video game platform Xbox and the career networking site LinkedIn. Some laid-off workers and the executives who made the cuts took to LinkedIn to talk about them.
“This is the first time I’ve had to lay people off to support business goals that aren’t my own," wrote Scott Hanselman, a vice president of Microsoft's developer community. “I often have trouble separating my beliefs with the system that I participate in and am complicit in. These are people with dreams and rent and I love them and I want them to be OK.”
He added: "This is a day with a lot of tears.”
The company didn't give a specific reason for the layoffs, only that they were part of "organizational changes necessary to best position the company for success in a dynamic marketplace.”
Microsoft has said it has been spending $80 billion in the fiscal year that ends in June on building data centers and other infrastructure it needs to develop its artificial intelligence technology, though it has also scaled back some of those projects. Those AI tools have been pitched as changing the way people work, including in Microsoft's own workplaces.
Microsoft CEO Satya Nadella told Meta CEO Mark Zuckerberg at an AI event last month at Meta's headquarters that “maybe 20, 30% of the code” for some of Microsoft's coding projects “are probably all written by software.”
Even if AI is increasingly helping Microsoft software engineers, however, doesn't necessarily mean it's a chief reason for laying them off.
“When these big tech companies say that they’re trimming management layers, that doesn’t really sound like it’s being driven by AI,” Zhao said. “You’re not expecting ChatGPT to replace the manager.”
Instead, cutting management ranks can often reflect a broader strategy.
“As companies grow quickly, you need to add managers who can coordinate across teams or within teams,” Zhao said. “But it’s not until things start to slow down that people start asking questions about how necessary those roles are.”
Of the laid-off employees in Washington, about 1,500 worked in person at Microsoft's offices and 475 worked remotely, according to the notice the company sent to the state employment agency. Their official last day will be in July.
After hiring sprees that started when the COVID-19 pandemic spiked demand for online services, many tech companies are still in a process of “coming back to Earth and trying to kind of rebalance some things,” said Cory Stahle, an economist at Indeed, the job listings website.
And while Microsoft isn't as directly affected by President Donald Trump's wide-ranging tariffs as some of its peers, it must also think more broadly about economic conditions that could play out over the coming months and years.
“This could be an effort to think more long term,” Stahle said. “If you have to go out and buy groceries and spend more on groceries and produce that are more expensive due to tariffs, you maybe don’t have as much discretionary income to spend on electronics or video game systems.”
FILE - A Microsoft sign and logo are pictured at the company's headquarters, Friday, April 4, 2025, in Redmond, Wash. (AP Photo/Jason Redmond, File)
SYDNEY (AP) — Two gunmen attacked a Hannukah celebration on a Sydney beach Sunday, killing at least 11 people in what Australian Prime Minister Anthony Albanese called an act of antisemitism and terrorism.
The massacre at one of Australia’s most popular and iconic beaches followed a wave of antisemitic attacks that have roiled the country over the past year, although the authorities didn’t suggest those episodes and Sunday’s shooting were connected. It is the deadliest shooting for almost three decades in a country with strict gun control laws.
One gunman was fatally shot by police and the second, who was arrested, was in critical condition, authorities said. Police said one of the gunmen was known to the security services, but that there had been no specific threat.
At least 29 people were confirmed wounded, including two police officers, said Mal Lanyon, the police commissioner for New South Wales state, where Sydney is located.
Police said officers were examining a number of suspicious items, including several improvised explosive devices found in one of the suspect’s cars.
“This attack was designed to target Sydney's Jewish community,” the state's premier, Chris Minns, said. The massacre was declared a terrorist attack due to the event targeted and weapons used, Lanyon said.
Hundreds had gathered for the Chanukah by the Sea event celebrating the start of the eight-day Hanukkah festival.
Chabad, an Orthodox Jewish movement that runs scores of centers around the world that are popular with Jewish travelers and sponsors large public events during major Jewish holidays, identified one of the dead as Rabbi Eli Schlanger, assistant rabbi at Chabad of Bondi and a key organizer of the event.
Video footage filmed by onlookers appeared to show two gunmen with long guns firing from a footbridge leading to the beach. One dramatic clip broadcast on Australian television showed a man appearing to tackle and disarm one of the gunmen, before pointing the man’s weapon at him, then setting the gun on the ground.
Minns called the man a “genuine hero.”
Police said emergency services were called to Campbell Parade in Bondi about 6.45 p.m. responding to reports of shots being fired.
Lachlan Moran, 32, from Melbourne, told The Associated Press he was waiting for his family nearby when he heard shots. He dropped the beer he was carrying for his brother and ran.
“You heard a few pops, and I freaked out and ran away. ... I started sprinting. I just had that intuition. I sprinted as quickly as I could," Moran said. He said he heard shooting off and on for about five minutes.
“Everyone just dropped all their possessions and everything and were running and people were crying and it was just horrible," Moran said.
The violence erupted at the end of a hot summer day when thousands had flocked to the beach.
“It was the most perfect day and then this happened,” said local resident Catherine Merchant.
“Everyone was just running and there were bullets and there were so many of them and we were really scared,” she told Australia’s ABC News.
Albanese told reporters in the Australian capital, Canberra, that he was “devastated” by the massacre.
“This is a targeted attack on Jewish Australians on the first day of Hanukkah, which should be a day of joy, a celebration of faith. An act of evil, antisemitism, terrorism that has struck the heart of our nation,” Albanese said.
“Amidst this vile act of violence and hate will emerge a moment of national unity where Australians across the board will embrace their fellow Australians of Jewish faith,” he said.
World leaders expressed condolences. Indian Prime Minister Narendra Modi condemned the “ghastly terrorist attack” and offered his condolences to the families who lost their loved ones.
British Prime Minister Keir Starmer said he was being updated on the “appalling attack.” Police in London said they would step up security at Jewish sites.
U.S. Secretary of State Marco Rubio said in a post on X that “The United States strongly condemns the terrorist attack in Australia targeting a Jewish celebration. Antisemitism has no place in this world.”
Australia, a country of 28 million people, is home to about 117,000 Jews, according to official figures. Antisemitic incidents, including assaults, vandalism, threats and intimidation, surged more than threefold in the country during the year after Hamas attacked Israel on Oct. 7, 2023, and Israel launched a war on Hamas in Gaza in response, the government's Special Envoy to Combat Antisemitism Jillian Segal reported in July.
Throughout last summer, the country was rocked by spate of antisemitic attacks in Sydney and Melbourne. Synagogues and cars were torched, businesses and homes graffitied and Jews attacked in those cities, where 85% of the nation’s Jewish population live.
Albanese in August blamed Iran for two of the attacks and cut diplomatic ties to Tehran. The authorities didn't make such claims about Sunday's massacre.
Israel urged Australia's government to address crimes targeting Jews.
“The heart of the entire nation of Israel misses a beat at this very moment,” Israeli President Isaac Herzog said. “We repeat our alerts time and time again to the Australian government to seek action and fight against the enormous wave of antisemitism which is plaguing Australian society.”
Mass shootings in Australia are extremely rare. A 1996 massacre in the Tasmanian town of Port Arthur, where a lone gunman killed 35 people, prompted the government to drastically tighten gun laws and made it much more difficult for Australians to acquire firearms.
Significant mass shootings this century included two murder-suicides with death tolls of five people in 2014, and seven in 2018, in which gunmen killed their own families and themselves.
In 2022, six people were killed in a shootout between police and Christian extremists at a rural property in Queensland state.
McGuirk reported from Melbourne, Australia, and Graham-McLay from Wellington, New Zealand. Associated Press writer Melanie Lidman in Tel Aviv, Israel, contributed to this report.
A small Christmas tree is at the center of an abandoned holiday picnic at Bondi Beach after a reported shooting in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Bystanders stay where police cordon off an area at Bondi Beach after a reported shooting in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers transport a person on a stretcher after a reported shooting at Bondi Beach in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers standby at Bondi Beach after a reported shooting in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers transport a person on a stretcher after a reported shooting at Bondi Beach in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers transport a person on a stretcher after a reported shooting at Bondi Beach in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers transport a person on a stretcher after a reported shooting at Bondi Beach in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers transport a person on a stretcher after a reported shooting at Bondi Beach in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers transport a person on a stretcher after a reported shooting at Bondi Beach in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
Emergency workers transport a person on a stretcher after a reported shooting at Bondi Beach, in Sydney, Sunday, Dec. 14, 2025. (AP Photo/Mark Baker)
