Tech layoffs: Microsoft, TikTok lead latest round of job cuts

Microsoft and TikTok are leading another round of job cuts in the tech industry this year as companies try to manage rising costs and focus on artificial intelligence (AI).

Microsoft said on July 2 that it will cut nearly 4% of its global staff. The company had 228,000 employees as of June 2024. In May, it had laid off 6,000 workers. The company is planning to cut thousands of jobs, particularly in sales, Bloomberg News reported last month.

The Seattle Times first reported on the layoffs, on Wednesday. Separately, Bloomberg News reported that Microsoft's Barcelona-based King division, which makes the Candy Crush video game, is cutting 10% of its staff, or about 200 jobs.


The tech giant is trying to cut costs by having fewer managers and reducing overlapping roles. It is also planning to simplify its products and processes.

Microsoft has committed to spend $80 billion this year, mainly on AI. But the rising cost of building its AI systems is hurting profits, especially in its cloud business.

Tiktok

At TikTok, job cuts are expected mainly in the ecommerce unit, TikTok Shop. According to Business Insider, the company told staff it would make "organisational and personnel changes" after reviewing how to work more efficiently. Last month, Bloomberg reported that TikTok had started replacing some US-based staff with leaders from China, as its US ecommerce push failed to meet its target of $17.5 billion in sales.

Over 100 people working for TikTok Shop in the US have either left or been fired. The company is also facing uncertainty in the US, as president Donald Trump has again delayed a possible ban on the app.

Google

In its latest round of job cuts, Google laid off 200 employees from its global business unit, responsible for sales and partnerships, in May, The Information reported.

In April, the company had axed hundreds of employees from its Platforms & Devices unit, which handles Android, Pixel and Chrome operations. It had offered a voluntary exit option to its US employees in the same unit at the beginning of 2025 following the merger of the Android and Pixel divisions.

In February, Google had fired employees from its cloud division to focus on areas "critical to our business and ensure our long-term success".

Meta

Facebook and Instagram parent Meta had announced a reformed performance assessment in January, leading to job cuts in February that saw 3,600 employees, or 5% of the workforce, laid off. Staff working on Facebook, the Horizon virtual reality (VR) platform, and logistics were hit the hardest.

Amazon

Amazon is planning to cut 14,000 managerial positions globally by early 2025 as part of a broader effort to reduce costs and improve operational efficiency, according to a report in Business Insider.

The move represents a 13% reduction in the company’s global management headcount.