Microsoft Lays Off 15,000 in 2025, Urges Employees to Focus on AI Skills
Microsoft Lays Off 15,000 in 2025, Urges Employees to Focus on AI Skills
Microsoft has cut 15,000 jobs in 2025, focusing on AI skill development for remaining staff. Julia Lewison emphasizes AI’s role in performance reviews, while sales staff face major layoffs.
Microsoft has laid off 15,000 employees across several divisions in 2025, with the latest phase cutting 9,000 jobs. The Xbox division was hit hard. Following these layoffs, the company has urged remaining employees to improve their AI skills.
Julia Lewison, Microsoft’s Developer President, told managers to consider AI when evaluating employee performance. Internal emails stressed that using AI is now mandatory at all levels. Microsoft is also exploring using AI to measure employee performance, aiming to set standards by next year.
The latest cuts mainly affected sales staff, who will be replaced by technical solutions engineers skilled in explaining AI tools to customers. Sales chief Judson Althoff is leading this strategy.
