Microsoft Announces Major Downsizing - 60,000 Affected

[roger]

70% of them are Indians.

Very unlikely. Do you have a source or it's just random comments without any basis. You can use AI to get data. It seems only 20% of global employees are Indian and most of these must be in the GCC in India as they are low cost place . Microsoft will not cut those employees. When you compare cost, it is always cost per FTE ( Full Time Employees / equivalent) and salary is just around 20% of the cost. Overheads in US and Europe is also huge compare to India. By the way, below AI result. "
Microsoft publishes this every year in its 10-K and Diversity & Inclusion Report. Here is the latest:

### 1. Total Headcount - Latest

- *June 30, 2026:* *∼223,000* full-time employees
- US: 121,000
- International: 102,000
- *June 30, 2025:* *228,000* - flat YoY for 2nd year
- US: 125,000, down 1,000
- International: 103,000, up 1,000
- US share: 54.8% 7d23

Microsoft says it has offices in *190+ countries / over 100 countries*, but only reports US vs International officially. Third-party workforce intelligence (Revelio Labs) March 2026 estimates:
- North America 39.2%
- South Asia 20.6% - mostly India
- Northern Europe 5.7% a5c5

*Largest hubs outside US:* India and China are the two largest. India estimated *23,000-25,000 employees* across Bengaluru, Hyderabad, Noida - 2nd largest after US. 808c

*By Function - FY25 10-K:*
- Operations (support, consulting, datacenter, manufacturing): 89,000
- Product Research & Development: 80,000
- Sales & Marketing: 44,000
- General & Administration: 15,000 b85238ad

Revelio breakdown: Engineering 43.5%, Finance & Ops 34.5%, Sales & Marketing 22.0% a5c5

### 2. Demographic Breakdown - 2024 Diversity & Inclusion Report (most recent official)

Microsoft calls this its most global and transparent report. Core Microsoft workforce, excluding minimally integrated companies like Activision:

*Gender - Global:*
- Women: *31.6%* of total workforce, up 0.4pp YoY
- Women in technical roles: *27.2%*, up 0.5pp YoY dae8acb1

*Race / Ethnicity - US:*
- Minority groups total: *53.9%* of US workforce, up 0.6pp
- Black and African American: *6.6%*, -0.1pp YoY
- Hispanic and Latinx: *8.0%*, +0.1pp YoY dae8acb1

From earlier years for context, Microsoft historically reported:
- ∼60.6% Caucasian, 28.9% Asian, 5.1% Hispanic/Latino, 3.5% African-American

*Leadership diversity:*
- Black and African American at Partner+Executive level: 4.3%, up 0.5pp
- Hispanic/Latinx at Executive level: 4.6%, up 0.8pp dae8

*Other self-ID:*
- US employees with disability: *9.0%*, +0.2pp
- US military/veteran: *4.8%*
- Datacenter workforce growth: +23.9% global YoY acb1

### 3. What Microsoft Does NOT Publish

Microsoft does *not* publish an official country-by-country headcount table beyond US vs International in SEC filings.

 

[Ali_Baba]

So, I looked back at @Feroze post from July regarding Xbox. Between that announcement and this one today, close to 65,000 jobs have been impacted.

At a lot of companies, this would not bode well. I'm still of the opinion that is the case here. @Hamartia Antidote is onto something that M$ is betting the farm on AI and datacenters.

Meta has also bet big on Ai and datacentres with its layoff that did a few months back. I suspect Meta may have another round of reductions esp with all its fines.

 

[Ali_Baba]

Very unlikely. Do you have a source or it's just random comments without any basis. You can use AI to get data. It seems only 20% of global employees are Indian and most of these must be in the GCC in India as they are low cost place . Microsoft will not cut those employees. When you compare cost, it is always cost per FTE ( Full Time Employees / equivalent) and salary is just around 20% of the cost. Overheads in US and Europe is also huge compare to India. By the way, below AI result. "
Microsoft publishes this every year in its 10-K and Diversity & Inclusion Report. Here is the latest:

### 1. Total Headcount - Latest

- *June 30, 2026:* *∼223,000* full-time employees
- US: 121,000
- International: 102,000
- *June 30, 2025:* *228,000* - flat YoY for 2nd year
- US: 125,000, down 1,000
- International: 103,000, up 1,000
- US share: 54.8% 7d23

Microsoft says it has offices in *190+ countries / over 100 countries*, but only reports US vs International officially. Third-party workforce intelligence (Revelio Labs) March 2026 estimates:
- North America 39.2%
- South Asia 20.6% - mostly India
- Northern Europe 5.7% a5c5

*Largest hubs outside US:* India and China are the two largest. India estimated *23,000-25,000 employees* across Bengaluru, Hyderabad, Noida - 2nd largest after US. 808c

*By Function - FY25 10-K:*
- Operations (support, consulting, datacenter, manufacturing): 89,000
- Product Research & Development: 80,000
- Sales & Marketing: 44,000
- General & Administration: 15,000 b85238ad

Revelio breakdown: Engineering 43.5%, Finance & Ops 34.5%, Sales & Marketing 22.0% a5c5

### 2. Demographic Breakdown - 2024 Diversity & Inclusion Report (most recent official)

Microsoft calls this its most global and transparent report. Core Microsoft workforce, excluding minimally integrated companies like Activision:

*Gender - Global:*
- Women: *31.6%* of total workforce, up 0.4pp YoY
- Women in technical roles: *27.2%*, up 0.5pp YoY dae8acb1

*Race / Ethnicity - US:*
- Minority groups total: *53.9%* of US workforce, up 0.6pp
- Black and African American: *6.6%*, -0.1pp YoY
- Hispanic and Latinx: *8.0%*, +0.1pp YoY dae8acb1

From earlier years for context, Microsoft historically reported:
- ∼60.6% Caucasian, 28.9% Asian, 5.1% Hispanic/Latino, 3.5% African-American

*Leadership diversity:*
- Black and African American at Partner+Executive level: 4.3%, up 0.5pp
- Hispanic/Latinx at Executive level: 4.6%, up 0.8pp dae8

*Other self-ID:*
- US employees with disability: *9.0%*, +0.2pp
- US military/veteran: *4.8%*
- Datacenter workforce growth: +23.9% global YoY acb1

### 3. What Microsoft Does NOT Publish

Microsoft does *not* publish an official country-by-country headcount table beyond US vs International in SEC filings.

Ai changes the game where low cost of people is not the value add as it once was, as all of sudden you can automate the low paying jobs with Ai. The value is in the high end with product and business knowledge, innovation being the key factors, and those have always remained in the west.

Ai will hit the back off the hardest, and the back office of the world is India right now with business process services outsourcing being its bread and butter.

I know of teams that have hired more Product owners, and business analysts and massively reduced their engineering staff, who these days just sit on top of Claude Code... How long before Product owners, and business analysts don't even need the engineering staff ?

 

[Mobius]

 

[Ali_Baba]

The profession being hit the hardest right now is software development and IT, and it is kind of ironic in that regard !

 

[Yasser76]

Meta has also bet big on Ai and datacentres with its layoff that did a few months back. I suspect Meta may have another round of reductions esp with all its fines.

For sure, as they become more and more efficient there will be more and more opportunities for cuts. This is the new normal.

10-15 years ago a job at Google, MS, Facebook pretty much meant you were sorted. Employees with experiance were in high demand, great perks, stock, pay, bonus, healthcare, time off etc

Now not only is AI replacing jobs but competition for those remaining has got more fierce, totally an employers market and they know employees will put up with anything, including job loss anxiety.

Make yourself indispensable, have skills that are hard for AI to replicate. Being a good networker, soft skills etc.

No one gives a shit of you are a powerpoint/excel wizard or can do good research, AI is doing much of that.

Also get some stock in Anthropic or SpaceX, 5 years from now you will massively thank the 2026 version of you for doing so

 

[Hamartia Antidote]

The debate about 'manufacturing' kind of reminds of the debate in America too: Leave the office jobs and do the 'handy' work: Plumbers, carpenters, roofers, farmers, auto mechanics... but those fields also can over saturated.
Maybe the only 'secure' handy jobs are the brute, literally back-breaking construction and paving the road jobs.

The market is pretty saturated with people who can do those jobs if they needed to.

 

[Meengla]

I know of teams that have hired more Product owners, and business analysts and massively reduced their engineering staff, who these days just sit on top of Claude Code... How long before Product owners, and business analysts don't even need the engineering staff ?

Ai maybe a form of 'democratization' of knowledge: Now more than ever before, ordinary people can get information and solve complex problems by applying some logical thought processes. And there is no stopping the Ai. Humanity collectively worked to remove the threat of the Ozone layer and to prevent potentially dangerous gene-manipulations work but Ai is a different kind of realm. We can't stop its march or control it and the fears about some Super Intelligence don't sound unfounded.

Make yourself indispensable, have skills that are hard for AI to replicate. Being a good networker, soft skills etc.
No one gives a shit of you are a powerpoint/excel wizard or can do good research, AI is doing much of that.

Right. And even those with the valued and vaunted C# skills are going to become as less desired as some Powerpoint gurus.

 

[Thinking_Hard]

Wow ! This will increase the happiness index of our neighbors !

Unfortunately, this impacts everyone.

Kids have gotten smarter. Number of kids enrolling for CS is plummeting. Electronics, AI...new frontier awaits..

 

[Ali_Baba]

Graduate jobs plunge to lowest in a decade as AI and rising costs hit entry-level hiring​

Graduate jobs plunge to lowest in a decade

One jobs website has said the number of graduate listings on its website has hit a low not seen since 2016, as AI hits opportunities for youngsters.

www.thisismoney.co.uk

 

[Yasser76]

Graduate jobs plunge to lowest in a decade as AI and rising costs hit entry-level hiring​

Graduate jobs plunge to lowest in a decade

One jobs website has said the number of graduate listings on its website has hit a low not seen since 2016, as AI hits opportunities for youngsters.

www.thisismoney.co.uk

This is it, a lot of grads do the learning and mundane/admin work initially that AI os perfectly suited to takeover

 

[BHAN85]

surplus of goyim slaves and shortage of all kind of energy and raw materials.

developed world acting like if developing world doesnt exist.

in developing world there are millions of hand made work easily industrializable with machines that existed since decades ago.

but banks cant see that potential investment profit and keep following investment trends from a few hundreds elite people. go on

 

[Yasser76]

surplus of goyim slaves and shortage of all kind of energy and raw materials.

developed world acting like if developing world doesnt exist.

in developing world there are millions of hand made work easily industrializable with machines that existed since decades ago.

but banks cant see that potential investment profit and keep following investment trends from a few hundreds elite people. go on

Actually robots are now doing much of that work, even in developing world, and will do more so as time moves on

 

[AZ_HighCountry]

Well between USA and India, a lot of Indians will be affected

@AZ_HighCountry - do not mean to derail the thread. It is obvious. The 60k is not the actual cuts. I expect it to be smaller

That's not how it's going to work.

MS announced a voluntary severance to 60,000 employees. If your job is one of those they flagged as eligible, you will be notified. If you don't take the offer, and probably get a decent package as well, you will be separated involuntarily.

That was how Motorola did it for years. One good friend of mine received almost 3 full years of pay as part of his package. Another, who would have received the same, held out. He did not receive the same package. Incentives are a big thing.

60,000 cuts are going to occur.

The question is; who will take the package and who is going to hold out and receive less?

 

[AZ_HighCountry]

The so called Witch companies are losing 50% of their business

But it will be offset by so-called GCC from foreign companies and startups

it will be a rude jolt - maybe their take from technology sector falls by 30-40%.


Me thinks - civil engineering is a great profession somewhat immune to AI

All of the engineering disciplines are starting to incorporate AI.

At the end of the day though, a human will still have to sign off on it that the work meets design standards and applicable jurisdictional codes.