Microsoft To Lay Off 9,000 Employees, About 4% of Workforce - 1

Photo by Praswin Prakashan on Unsplash

Microsoft To Lay Off 9,000 Employees, About 4% of Workforce

  • Written by Andrea Miliani Former Tech News Expert
  • Fact-Checked by Sarah Frazier Former Content Manager

Microsoft announced it will lay off around 9,000 employees on Wednesday. The decision affects nearly 4% of its workforce across different teams, roles, and locations.

In a rush? Here are the quick facts:

  • Microsoft announced it will lay off around 9,000 employees, nearly 4% of its workforce.
  • The layoffs will impact roles in marketing and the gaming division, and the company also plans to reduce the number of managers.
  • In May, the tech giant cut around 6,000 jobs.

According to Reuters , Microsoft employed around 228,000 people as of June 2024. Since then, the company has undergone several rounds of layoffs. It announced job cuts from its Xbox gaming units in September , followed by a smaller reduction of less than 1% in January. The most significant wave came in May this year, affecting around 6,000 workers.

The latest layoffs will impact roles in marketing and the gaming division, and the company also plans to reduce the number of managers to streamline its organizational structure.

Experts suggest the company is also looking to cut costs following major investments in AI technology. OpenAI and Microsoft are reportedly negotiating a multibillion-dollar partnership .

The first wave of layoffs in this round was reported in Seattle and at Microsoft’s Barcelona-based King division, where the company cut 10% of its staff—about 200 employees.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” said a spokesperson from Microsoft in an email.

According to CNBC, the announcement comes at the end of Microsoft’s fiscal year, a time when the company typically makes structural adjustments to prepare for the next fiscal cycle.

In 2023, Microsoft laid off 10,000 employees, and its record was in 2014, when 18,000 jobs were cut following the acquisition of Nokia.

A source familiar with the matter explained that, this time, Microsoft wants to reduce layers between individual contributors and top executives.

“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” wrote Phil Spencer, Microsoft’s CEO of gaming, in the internal memo sent to employees.

Microsfort reported a $26 billion in net income for the March quarter, keeping its ranking as one of the most profitable companies in the S&P 500 index.

OpenAI Warns Robinhood’s OpenAI Tokens Are Not Company Equity - 2

Photo by PiggyBank on Unsplash

OpenAI Warns Robinhood’s OpenAI Tokens Are Not Company Equity

  • Written by Andrea Miliani Former Tech News Expert
  • Fact-Checked by Sarah Frazier Former Content Manager

OpenAI warned on Wednesday that it has not partnered with the trading app Robinhood, and does not endorse the tokens bearing its name that are being promoted by the financial service platform.

In a rush? Here are the quick facts:

  • OpenAI warned that it had not partnered with Robinhood on Wednesday.
  • Robinhood announced new tokenized equities for OpenAI and SpaceX at a crypto event in Cannes.
  • The AI company said Robinhood’s “OpenAI tokens” are not official equity.

According to CNBC , on Monday, Robinhood announced new tokenized equities for OpenAI and SpaceX at a crypto event in Cannes, France, pricing them at 5 euros. The trading company introduced the tokens as part of a broader product and services announcement, and encouraged European users to join the crypto platform.

In response to the announcement, OpenAI clarified that it is not involved in the offering and distanced itself from the initiative, adding that users should be careful.

“These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it,” wrote OpenAI on a post on the social media platform X. “Any transfer of OpenAI equity requires our approval—we did not approve any transfer. Please be careful.”

These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval—we did not approve any transfer. Please be careful. — OpenAI Newsroom (@OpenAINewsroom) July 2, 2025

OpenAI remains a private company and has not launched an IPO, despite long-standing speculation. Its final company structure , announced in May, includes a nonprofit entity that will remain the controlling stakeholder, and a for-profit arm that will transition into a Public Benefit Corporation.

According to Reuters , Robinhood explained that it set up a Special Purpose Vehicle (SPV)—without identifying the vehicle—which holds shares in OpenAI. The stock tokens are being distributed through a limited-time giveaway.

“To cap off our recent crypto event, we announced a limited Stock Token giveaway on OpenAI and SpaceX to eligible European customers,” wrote Robinhoon on X on Thursday. “These tokens give retail investors indirect exposure to private markets, opening up access, and are enabled by Robinhood’s ownership stake in a special purpose vehicle.”

Following the announcement of the new OpenAI and SpaceX tokens, Robinhood’s stock surged nearly 13%, climbing above $100—an all-time high—according to CNBC.