Microsoft will cut nearly 2,000 jobs in Washington state as part of broader layoffs

Microsoft will lay off 1,985 workers in Washington state starting July 12, part of its broader global workforce reduction announced Tuesday, according to a new filing with the state Employment Security Department.

The total includes 1,510 employees based in Microsoft offices and 475 remote workers, the WARN (Worker Adjustment and Retraining Notification) filing shows.

The company employed around 54,000 people in the Seattle region as of last month.

It marks the most significant round of layoffs for Microsoft in its home state since 2023, when the company cut nearly 3,200 jobs across multiple rounds amid a broader wave of tech industry downsizing.

Under the federal WARN Act, large employers are required to notify states in advance of mass layoffs.

Globally, Microsoft said early Tuesday that fewer than 3% of its workforce will be affected. That would equate to approximately 6,000 employees, based on the company’s most recent reported headcount of 228,000 as of June 2024, and accounting for separate performance-based job cuts earlier this year.

A spokesperson for Microsoft said the latest cutbacks are intended to “best position the company for success in a dynamic marketplace.”

Microsoft did not say whether the rise of AI-powered tools played a direct role in the decision. CFO Amy Hood said on the company’s April 30 earnings call that Microsoft is focused on operational efficiency and reducing layers of management.