Microsoft Plans Fresh Layoffs, Impacting Thousands of Roles

Microsoft is preparing another round of job cuts, with the announcement expected as early as next week, according to a Reuters report citing Business Insider. The reduction is expected to affect under 2.5% of the company’s global workforce, translating into thousands of positions across multiple divisions.

The layoffs are likely to hit sales and consulting teams, as well as staff within the Xbox gaming unit. Microsoft has not commented on the report. As of June 30, 2025, the company employed about 228,000 full‑time workers worldwide, according to its filings with the U.S. Securities and Exchange Commission.

The Xbox division, which recently raised prices on consoles globally due to supply chain challenges, is reportedly facing significant cuts to marketing budgets and broader restructuring. Earlier reports from Bloomberg suggested that Microsoft is weighing options for the gaming business, including a potential spinoff or reorganizing it as a wholly owned subsidiary.

This move follows a series of workforce reductions across the technology sector. In July 2025, Microsoft announced one of its largest layoffs in recent years, cutting nearly 4% of its staff. Other major players have also trimmed headcount: Meta has outlined plans to reduce its workforce by 10%, while Amazon has announced cuts of around 16,000 jobs globally.

Industry analysts note that while companies are tightening costs, they are simultaneously investing heavily in artificial intelligence infrastructure. Microsoft has been at the forefront of this shift, channeling resources into cloud services and AI‑driven products, even as traditional business units face budget pressures.

For employees, the latest round of cuts adds to uncertainty in a sector already marked by volatility. The reductions are expected to ripple across sales, consulting, and gaming, areas that have historically been central to Microsoft’s growth strategy.

The broader trend reflects a recalibration across U.S. corporations, particularly in technology, media, and finance, as firms balance cost control with long‑term bets on AI and digital transformation.

While the exact timing and scale of Microsoft’s announcement remain unconfirmed, the reported layoffs underscore the ongoing reshaping of the tech workforce in 2026.

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