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Microsoft Lays Off 830 Employees in Washington State

ByHilary Ong

Jul 7, 2025

Microsoft Lays Off 830 Employees in Washington State

Among the thousands affected by Microsoft’s recent workforce reduction, approximately 830 employees in its home state of Washington lost their jobs. This includes a diverse group of roles, from game design to engineering and legal teams.

Varied Roles Included in Layoffs

According to a filing Microsoft submitted to Washington state employment officials, the cuts involved nearly a dozen game designers, three audio designers, two mechanical engineers, one optical engineer, and one lab technician. The company also laid off five individual contributors and one manager within the Microsoft Research division. Additionally, 10 lawyers and six hardware engineers in the state were part of the layoffs.

In sales, 16 customer success account managers, 28 sales strategy enablement staff, and five sales compensation workers based in Washington were also let go. A single government affairs employee in the state was included in the reductions.

Focus on Efficiency Amid Growth in Cloud Services

Microsoft announced plans on Wednesday to eliminate 9,000 jobs company-wide as part of an effort to reduce redundancy and encourage staff to focus on more meaningful work through new technology adoption, according to a source familiar with the matter.

The company’s cloud services, particularly Azure, remain its fastest-growing segment, with customers paying based on usage. However, 17 cloud solution architects in Washington were among those affected by the job cuts.

While CEO Satya Nadella has not commented publicly on the layoffs, Microsoft CFO Amy Hood referenced a “focus on cost efficiencies” during the March quarter in a recent analyst call.

Since the announcement, several Microsoft salespeople and video game developers have shared their departures on social media. Despite the layoffs, Xbox content and services revenue grew by 8% in April, though this trailed overall company growth of 13%.

Author’s Opinion

Microsoft’s layoffs in Washington highlight the challenging balance between innovation and operational efficiency. While cloud services continue to drive growth, trimming roles in key areas suggests the company is streamlining for long-term sustainability. It’s a tough moment for affected workers, but a necessary adjustment as tech giants recalibrate in a shifting market.


Featured image credit: Heisenberg Media via Flickr

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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