Microsoft will lay off 1,985 employees in Washington state starting July 12, including 475 remote workers, according to a WARN notice. It’s the largest local cut since 2023.

The technology company, headquartered in Washington, is cutting 122 workers in Silicon Valley. The layoffs heavily affected software engineering roles.

Microsoft is laying off 6,000 employees in 2025, focusing on AI growth and cutting management layers despite strong earnings. U.S. staff hit hardest.