Story perspectives

Microsoft U.S. Workforce Shrinks 5,000 — First Decline Since 2016

7/31/2026

Summary

Story summary

Microsoft Corp. reported its U.S. workforce fell by 5,000 to 223,000 full-time employees as of June 30, 2026, the first decline since 2016.
A June voluntary retirement program made 8,750 U.S. staff eligible, with roughly 30% accepting and prompting an expected $900 million severance charge.
The lower participation slightly boosted Microsoft’s $35.8 billion fourth-quarter profit while prior layoffs and Xbox cuts did not affect the head-count decline.

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Story summary

Microsoft Corp. reported its U.S. workforce fell by 5,000 to 223,000 full-time employees as of June 30, 2026, the first decline since 2016.
A June voluntary retirement program made 8,750 U.S. staff eligible, with roughly 30% accepting and prompting an expected $900 million severance charge.
The lower participation slightly boosted Microsoft’s $35.8 billion fourth-quarter profit while prior layoffs and Xbox cuts did not affect the head-count decline.