Microsoft’s Next Cut: More Layoffs Hit WA – What You Need to Know

Microsoft has confirmed another round of layoffs in Washington state.

The company is laying off 40 Washingtonm-based employees as Microsoft continues to streamline its workforce. The Monday layoff filing is secheduled to take effect on October 3, 2025.

More Than Half of Microsoft Layoffs in WA This Year Came in a Filing in May

To date, the company has cut more than 3,100 jobs in Washington this year from both its Redmond and Bellevue campuses. 1,985 were let go from the company's Redmond campus. In addition, Microsoft laid off 305 employees in June, and another 830 jobs were cut in July.

Read More: Kennewick JCPenney Included in Epic 119-Store Mega Sale

Nationwide, Microsoft has Submitted Approximately 15,000 layoffs This Year

Microsoft announced in May that it was letting go 6,000 employees, and in July, another 9,000 employees were cut.

The company is reportedly shifting its focus towards artificial intelligence. In the last year alone, Microsoft has  invested $88 billion to enhance its AI infrastructure. The company has plans to invest another $30 billion in capital spending next quarter.

While the layoff process has been described as "painful" by Microsoft CEO Satya Nadella, he says the company's restructuring is necessary for Microsoft's long-term strategy of embracing AI.

Despite the Layoffs, Investors Continue to Support Microsoft's AI Vision

The company's stock closed above $500 for the first time on July 9, indicating that Wall Street is supportive of the company's leaner operating model and AI focus.

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According to Microsoft's latest Earnings Release for the quarter ending June 30, 2025:

“Cloud and AI is the driving force of business transformation across every industry and sector," said0 Satya Nadella, chairman and chief executive officer of Microsoft. “We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”