A magnetic read head and a method for manufacturing a magnetic read head are provided. In one embodiment, the method includes providing the magnetic read head comprising a pinning layer disposed over a substrate of the magnetic read head, a pinned layer, a reference layer, a tunneling barrier layer, and a free layer, wherein the free layer is in contact with the tunneling barrier layer. The method further includes milling partially through the free layer from a back surface, thereby creating an exposed face of the free layer which is parallel to the substrate and oxidizing a portion of the free layer between the exposed face and the tunneling barrier layer. The method further includes milling through the free layer, tunneling barrier layer, reference layer, pinned layer, and pinning layer along lateral sides of the magnetic read head.