'MBAs are getting worthless...': Microsoft sacks 6,800, cloud CEO warns other firms will follow soon
While Microsoft did not specify which departments were hardest hit, the company told CNBC the cuts were part of a broader organizational reshaping, not based on performance.
- May 14, 2025,
- Updated May 14, 2025 9:53 AM IST
Tech’s middle managers just got a brutal wake-up call. Microsoft is cutting thousands of jobs — and one cloud CEO says MBAs and project managers are right in the firing line.
Microsoft confirmed it is laying off 3% of its global workforce — more than 6,800 employees — in its largest round of job cuts since 2023. The reductions hit teams, levels, and regions across the board as the company pushes to strip out management layers and stay competitive in an AI-driven market.
LV Niles, a US-based cloud firm founder, reacted bluntly on X, writing, “Gang loads of overpaid PM were laid off earlier this morning at Microsoft Redmond. Probably worldwide too. Other companies will follow soon. MBA are getting increasingly worthless. BEWARE folks.”
While Microsoft did not specify which departments were hardest hit, the company told CNBC the cuts were part of a broader organizational reshaping, not based on performance.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson told CNBC.
The layoffs come as other tech companies follow a similar playbook. Cybersecurity firm CrowdStrike announced a 5% headcount reduction last week, and Amazon recently cut roles, citing “unnecessary layers” of management.
Despite the cuts, Microsoft remains on strong financial footing. It reported $25.8 billion in net income for the quarter ending in April, beating analyst expectations, and maintained an optimistic forecast for the months ahead.
Still, the company is moving to slim down, echoing a broader tech industry shift where roles not directly tied to engineering or product are increasingly under scrutiny.
Niles’s warning is stark: tech’s old safe zones — MBAs and program managers — are fast losing ground.
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Tech’s middle managers just got a brutal wake-up call. Microsoft is cutting thousands of jobs — and one cloud CEO says MBAs and project managers are right in the firing line.
Microsoft confirmed it is laying off 3% of its global workforce — more than 6,800 employees — in its largest round of job cuts since 2023. The reductions hit teams, levels, and regions across the board as the company pushes to strip out management layers and stay competitive in an AI-driven market.
LV Niles, a US-based cloud firm founder, reacted bluntly on X, writing, “Gang loads of overpaid PM were laid off earlier this morning at Microsoft Redmond. Probably worldwide too. Other companies will follow soon. MBA are getting increasingly worthless. BEWARE folks.”
While Microsoft did not specify which departments were hardest hit, the company told CNBC the cuts were part of a broader organizational reshaping, not based on performance.
“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson told CNBC.
The layoffs come as other tech companies follow a similar playbook. Cybersecurity firm CrowdStrike announced a 5% headcount reduction last week, and Amazon recently cut roles, citing “unnecessary layers” of management.
Despite the cuts, Microsoft remains on strong financial footing. It reported $25.8 billion in net income for the quarter ending in April, beating analyst expectations, and maintained an optimistic forecast for the months ahead.
Still, the company is moving to slim down, echoing a broader tech industry shift where roles not directly tied to engineering or product are increasingly under scrutiny.
Niles’s warning is stark: tech’s old safe zones — MBAs and program managers — are fast losing ground.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine