Microsoft Layoffs: Over a Quarter Were In-Office at Redmond HQ

Compliance with return-to-office didn’t spare over 1,500 employees from job cuts

Related coverage: Industry News.

Related: Industry News.

Despite its massive AI push and strong quarterly performance, Microsoft laid off around 6,000 employees globally in May 2025. What’s raising eyebrows? More than a quarter of those affected were working in-office at Microsoft’s Redmond headquarters. That’s right—being physically present didn’t shield them from the axe.

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Over 1,500 Let Go at Redmond—Despite Following the Rules

According to internal data reported via GeekWire and LinkedIn, out of 1,985 Washington State layoffs, more than 1,500 were in-office employees. Many of them worked directly from Redmond HQ. That’s a hard blow to the belief that returning to the office offered some kind of job security. Turns out, it didn’t.

Restructuring for AI—$80 Billion into the Future, But at What Cost?

Microsoft isn’t struggling financially. In fact, it’s doubling down on AI infrastructure with plans to spend $80 billion this fiscal year. CEO Satya Nadella has stated that AI now contributes to 20–30% of code output at Microsoft. But that growth comes at the cost of human jobs—some lost due to automated performance analysis and even layoffs decided by algorithm.

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This Is About Real People. Real Lives. Real Careers.

So this is real people, families, careers—just gone in a second. And it doesn’t seem to stop. Who needs people anyway, right?

It’s sad, but I also understand it. I know someone with more than 30 years in the industry, working on projects everyone reading this has probably played—indie to AAA. Games that are etched into gaming history. And today? He can’t get a job. People dream of a résumé like his.

He’s one of those people who quietly helped shape the games that shaped us. Not loud, not flashy—just brilliant. You’d think that kind of legacy would speak for itself. But even with all that behind him, he’s struggling to find a place now. And sadly, he’s not alone. I know one of them personally, but there are many. Too many.

I see this from the inside, the outside… and it’s just sad. And it’s happening fast. As I’m writing this, I’m almost certain there’s another layoff announcement being drafted somewhere. That’s how fast it’s moving. And since I’m the “news” guy now, I take this personally. It affects me.

It’s not my job—but who knows? I might end up alone forever, typing words while AI takes over everything. Someone has to tell it what ethics are and prompt it, right? Do I know how? No. Do I need to learn? Probably.

This isn’t just about Microsoft. It’s about everyone in the industry. Developers, publishers, indie teams, journalists, gamers. All of us.

I’ll manage. But not everyone does. And it’s hard. Really hard.

If your team is looking for a truly experienced PR and Marketing professional—someone I personally recommend and who has also worked in advisory roles, publishing strategy, and developer relations—you can reach out here: fix@fixgamingchannel.com

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