Microsoft to Lay Off 86 Employees Across California Offices in July

Microsoft is set to lay off 86 employees across its California offices on July 12, 2025, as part of a broader restructuring effort. The layoffs, disclosed in a Worker Adjustment and Retraining Notification (WARN) filing with the California Employment Development Department, will impact staff at multiple locations in Mountain View and Santa Clara. 

Microsoft to Lay Off 86 Employees Across California Offices in July

Specifically, the job cuts include 82 employees at 1045 La Avenida Street in Mountain View, one employee at 770 East Middlefield Road in Mountain View, and three employees at 3201 Scott Boulevard in Santa Clara. The affected positions span various roles, including software engineers, technical program managers, product managers, and financial analysts.  

These layoffs are part of Microsoft’s global workforce reduction, which aims to cut approximately 3% of its total employees, equating to around 7,000 jobs worldwide. The company cites a need to “reorganize and restructure operations” to enhance agility and streamline management layers.

This move marks Microsoft’s most significant round of job cuts since January 2023, when it eliminated 10,000 positions. Earlier in 2024, the company also laid off 1,900 employees in its gaming division, including 162 in the Bay Area.

The layoffs reflect ongoing adjustments within the tech industry as companies adapt to evolving market dynamics and technological advancements. Microsoft’s decision underscores the challenges faced by tech giants in maintaining operational efficiency amid rapid innovation and shifting economic conditions.

Employees affected by the layoffs are expected to receive severance packages and support services to assist with the transition. Microsoft has expressed its commitment to providing resources to help impacted workers find new opportunities within or outside the company.

As reported earlier on AllBlogThings, the company (Microsoft) continues to invest in strategic areas such as artificial intelligence and cloud computing, aiming to position itself for long-term growth despite the current workforce reductions.

As the tech landscape is changing in an unpredictable fashion, Microsoft emphasizes the importance of aligning its organizational structure with its strategic priorities to remain competitive and maintain its position.