Microsoft Workforce Fell for First Time in a Decade as Revenue Rose 18%

Microsoft's employee count dropped by roughly 5,000 in fiscal 2026, marking its first contraction in 10 years, while annual revenue advanced 18% to $331.8 billion.

The company had about 223,000 full-time employees as of June 30, down from 228,000 a year earlier. That total included 121,000 employees in the United States and 102,000 abroad.

Research and development staff totaled about 77,000, roughly 4,000 below the category's 2024 peak.

The June headcount did not include a separate round of about 4,800 job cuts in July. Microsoft said the eliminated positions would not be directly replaced by AI.