Microsoft to Cut 120 Australian Jobs in Global Layoffs

Microsoft is letting go of about 120 employees in Australia as part of its global layoff plan. This move is part of a bigger worldwide cut of nearly 9,000 jobs, or about 4% of the company’s workforce. It’s not the first time we’ve seen big tech companies take this route for Australian jobs. In fact, many are doing the same to manage rising costs, especially with their growing focus on artificial intelligence (AI).

We’re in a time where technology is moving fast, but not everyone is keeping their job along the way. For many, this news came as a shock. But for others, it was expected, given the current market shifts and company strategies.

Let’s explore what these cuts mean for Australia, why Microsoft is making them, and how they tie into the global tech scene. We’ll also look at how workers can prepare for the changes ahead.

Why is Microsoft Doing This?

We learn from Reuters and other reports that Microsoft is under pressure. The company is pouring up to US$80 billion into data centres and AI tools this fiscal year. These massive investments have eaten into profits. To balance, the company is trimming costs, especially by reducing layers of middle management and underperforming or redundant roles.

What areas are hit?

The latest job cuts hit multiple divisions:

• Sales and marketing, including Australian teams.
• Xbox‑gaming studios, including King (Candy Crush) and Raven (Call of Duty).
• Cloud and AI‑related infrastructure roles, though these are less affected.

Why It Matters for Australia?

Even 120 jobs can shake local tech: losses at Microsoft ripple through suppliers, partners, and smaller firms. We could see fewer local hires and more uncertainty. For those affected, this news is tough but not surprising. Layoffs haven’t been limited to Microsoft. Big names like Alphabet, Meta, Amazon, and Telstra have also cut staff amid economic pressures and AI spending.

Australian Jobs: What Support Does Microsoft Offer?

Microsoft says it’s offering 60-day severance pay and giving affected employees until July 8 to accept. The company is encouraging transitions into other teams, like cloud infrastructure or AI engineering. But retraining has limits; many roles require very specific skills.

The Wider Tech Wave

We’re seeing a pattern across big tech:

• January to July 2025: roughly 76,000 layoff announcements in the tech industry.
  
• Companies like Google, Meta, and Amazon have slashed jobs to stay lean as AI and automation reshape their ways of working.

What’s Next for Microsoft

Microsoft ended its last quarter with ~US$70 billion in revenue and US$26 billion in net income. Its stock is up over 17% this year. So, the layoffs are not about survival but strategy. The goal is to keep high margins while funding AI‑powered services like Azure, Copilot, and its OpenAI partnerships.

Analysts expect more “efficiency waves” ahead. Microsoft is likely to continue pruning projects and teams that don’t directly fuel AI growth 

For Affected Workers

Here’s what we recommend:

• Seek out AI, cybersecurity, and cloud roles; these areas are growing fast
• Upskill: Microsoft and online platforms (like LinkedIn Learning) offer short courses in AI and data jobs.
• Update your resume: highlight AI, data, and cloud project experience.
• Network: connect with recruiters and alumni groups; these help open doors quickly.

Final Thoughts

Microsoft’s decision to cut 120 Australian jobs is part of a global effort to stay lean while betting big on AI. We’re not immune to change, especially here in Australia. But this shift also opens doors in new, growing fields. It reminds us that to thrive in tech’s fast lane, we must learn fast and steer smart.

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Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.