[Report: Microsoft’s Total Workforce Declines for the First Time in a Decade, Down by About 5,000 in Fiscal Year 2026] According to IT Home, Microsoft’s FY2026 10-K filing shows that as of June 30, 2026, the company had approximately 223,000 full-time employees, a decrease of about 5,000 from the previous year’s 228,000, marking the first decline in a decade. Among them, 121,000 employees were based in the United States, and 102,000 were overseas. The number of R&D employees was approximately 77,000, down by about 4,000 from its peak in 2024. During the same period, Microsoft’s FY2026 revenue grew 18% year-over-year to $331.8 billion. The above employee statistics do not include a 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.