Microsoft Plans Fresh Layoffs
Microsoft is preparing another round of job cuts that could affect fewer than 2.5% of its global workforce, according to a report by Business Insider published on Tuesday. The layoffs could be announced as early as next week and are expected to affect thousands of employees.
Reuters could not immediately verify the report.
The latest move comes as companies across the United States continue to reduce headcount while directing substantial investment towards artificial intelligence infrastructure. Technology, media and finance firms have announced fresh job cuts in recent months as they seek to manage costs and reshape their operations.
Layoffs Expected Across Multiple Divisions
According to the Business Insider report, the planned reductions will affect thousands of roles across several business areas. Sales and consulting teams are expected to be among those impacted. In addition, jobs within Microsoft’s Xbox gaming division are also likely to be affected.
Microsoft declined to comment on the reported plans.
The company employed around 228,000 full-time staff as of 30 June 2025, according to a filing submitted to the US Securities and Exchange Commission last year.
Xbox Business Faces Further Cost Reductions
The reported layoffs follow earlier cost-cutting measures within Microsoft’s gaming business. Earlier this month, Bloomberg News reported that Xbox was preparing significant workforce reductions alongside cuts to marketing and other budgets.
The gaming division had also increased prices for its consoles worldwide, citing a worsening global components crisis.
Meanwhile, The Information reported earlier in June that Microsoft was considering several strategic options for its Xbox business. These included a potential spinoff or a restructuring that would make the division a wholly owned subsidiary.
Latest Move Follows Previous Workforce Cuts
The planned reductions would follow another major round of layoffs announced in July 2025. At that time, Microsoft said it would eliminate nearly 4% of its workforce, marking one of the company’s largest rounds of job cuts in recent years.
The wider technology sector has also continued to reduce staffing levels. Earlier this year, Meta announced plans to cut 10% of its workforce. Amazon also outlined plans to eliminate roughly 16,000 jobs globally as companies continued efforts to streamline operations while expanding investment in artificial intelligence.
With inputs from Reuters