Microsoft trims layers of management to boost team agility, with business units like Xbox and LinkedIn also affected by the organizational changes.

It’s unclear how much Microsoft hopes to save through the layoffs. When the company laid off 10,000 workers in 2023, analysts estimated that the move was poised to save Microsoft about $2.5 billion over the subsequent year. That figure included the $1.2 billion charge the company had logged in connection with the job cuts.

The layoffs, which will affect almost 2,000 workers in Washington state, are meant in part to strip away layers of management and create more nimble teams.