Microsoft, Amazon To Cut 1000s Of Puget Sound Jobs

REDMOND, WA — Redmond-based Microsoft is the latest tech behemoth in Puget Sound to announce upcoming layoffs, confirming on Wednesday it planned to cut 10,000 jobs — roughly 5 percent of its global workforce. The announcement came the same day Seattle-based Amazon confirmed new layoffs, impacting 2,300 workers in Seattle and Bellevue.

Microsoft CEO Satya Nadella sent a letter to employees, published on the company's blog Wednesday, outlining a shift in strategy amid economic uncertainty and changing consumer habits.

"It's important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas," Nadella said. "We know this is a challenging time for each person impacted. The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible."

The incoming job cuts, while significant, represent far fewer jobs than the company added over the pandemic, as demand soared for workplace and cloud software to facilitate work-from-home operations across the globe. According to the Associated Press, Microsoft's total workforce grew from 163,000 to 221,000 between June 2020 and 2021.

With more than 50,000 workers in Washington, Microsoft is one of the state's top 10 largest employers. A notice issued by the Employment Security Department said the latest round of job cuts would impact 878 workers in Redmond, Bellevue and Issaquah, beginning in late March.

Microsoft's scaling back follows earlier moves from Amazon, Meta, Salesforce and Twitter, impacting more than 3,000 Puget Sound tech workers. Amazon and Meta are cutting 18,000 and 11,000 jobs across their global workforce, and widespread reductions at Twitter impacted 208 workers in Seattle last year.

According to the ESD, Amazon will cut its Seattle workforce by more than 1,850 people in late March and shrink its Bellevue staff by nearly 450 employees.

The Associated Press contributed reporting.