Microsoft's total number of employees has decreased for the first time in a decade, with a reduction of about 5,000 people in the fiscal year 2026

According to Microsoft's 10-K filing for fiscal year 2026, as of June 30, 2026, the company had approximately 223,000 full-time employees, down from 228,000 the previous year, a decrease of about 5,000, marking the first decline in ten years.

Among them, there are 121,000 employees in the United States and 102,000 employees overseas; approximately 77,000 employees are in research and development, a decrease of about 4,000 from the peak in 2024. During the same period, Microsoft's revenue for fiscal year 2026 increased by 18% year-on-year, reaching $331.8 billion.

The above employee statistics do not include the new round of approximately 4,800 job cuts in July 2026. Microsoft previously stated that the eliminated positions would not be directly replaced by AI.