Microsoft is cutting roughly 3% of its global workforce—about 6.000 employees—as part of a restructuring effort targeting middle and upper management, the company confirmed Tuesday. The layoffs come despite strong recent financial results, with quarterly revenue beating expectations across all divisions.

A spokesperson said the move aims to “streamline operations and reduce management layers” to stay competitive in a shifting market. As of June 2024. Microsoft employed 228.000 full-time workers globally.

This isn’t the tech giant’s first workforce trim. In January 2023. it slashed 10.000 roles post-pandemic, and additional cuts followed its $69 billion Activision Blizzard acquisition last year, impacting Xbox teams.

While the company reported optimistic earnings in April, analysts note the cuts reflect broader industry trends. Tech firms that ballooned staff during COVID-19 are now scaling back, even as profits rebound.

“We regularly adjust our workforce to align with strategic priorities,” the spokesperson added. For now, those priorities include leaning out management—leaving thousands of employees, and their bosses, bracing for what’s next.