Microsoft said that it will lay off approximately 9,000 employees, its second huge layoff in months and the largest in more than two years. The Satya Nadella-led tech behemoth issued notices on Wednesday,

These changes come at a time when we have more players, games, and gaming hours than ever before,” said Xbox head Phil Spencer in an email to staff.

The new round of layoffs is Microsoft’s deepest single cut to its workforce since 2023, when it eliminated 10,000 jobs. Microsoft’s 2025 layoffs together have eclipsed that number, with 15,000 employees losing their jobs this year so far.