Microsoft Reports First Year-Over-Year Headcount Reduction in a Decade
Microsoft's 2026 annual report reveals that the company's total headcount fell to approximately 223,000 as of June 30th. This represents a decrease of 5,000 employees compared to the 228,000 reported in 2025. This marks the first time Microsoft has seen a year-over-year reduction in its workforce in ten years, with the last significant contraction occurring during the Nokia business restructuring in 2015 and 2016. The decline follows more than 9,000 layoffs conducted by the company over the past year.
