London, April 14, 2025 — Microsoft has trimmed its UK workforce by over 200 employees, even as the company posted record-breaking revenues both locally and globally.
According to documents filed with Companies House and first reported by City A.M., Microsoft Limited — the firm’s primary British division — reduced its headcount from 5,540 to 5,337 employees in the year ending June 30, 2024. Despite the reduction, Microsoft’s UK presence remains robust, with staffing levels still higher than the 4,955 reported the previous year.
The job cuts come at a time of exceptional financial strength for the tech giant. Microsoft Limited posted £9.62 billion in revenue over the 12-month period, a 15% jump from £8.38 billion the year prior. Globally, Microsoft reported $245.12 billion in revenue, marking a 16% year-on-year increase.
One significant milestone for Microsoft’s UK operations last year was the Competition and Markets Authority’s decision not to pursue a full-scale investigation into its partnership with OpenAI. However, scrutiny continues abroad, with two U.S. Senators recently voicing concerns over Microsoft’s collaboration with OpenAI and Google’s ties to Anthropic.
Despite the layoffs, Microsoft is reinforcing its long-term commitment to the UK. The company announced plans to build a massive hyperscale data center near Leeds after acquiring a 48-acre former power station site in June 2023. The move reflects Microsoft’s ongoing expansion strategy, even amid broader market corrections and modest workforce adjustments.
The recent cuts mark Microsoft’s third round of small-scale layoffs in 2025, according to tech layoff tracker layoffs.fyi. Compared to larger reductions seen across the tech sector in previous years, the pace of job losses appears to be slowing.
TechRadar Pro reached out to Microsoft for further comment on the redundancies but had not received a response at the time of publication.
