In the latest round of job cuts at Microsoft, reportedly scheduled to be announced next week, the company is expected to reduce under 2.5 per cent of its workforce. That means, as per BI’s report, thousands of employees across different divisions may be affected.
The layoffs are likely to hit roles in sales, consulting, and the Xbox gaming unit. Microsoft had about 2.28 lakh full-time employees as of 30 June, 2025, based on its SEC filing.
This move comes as US companies continue to trim staff in technology, media, and finance while redirecting spending toward AI infrastructure. Microsoft itself has been investing heavily in AI, even as it reduces headcount in other areas.
The Xbox division, which recently raised console prices worldwide due to supply chain challenges, is reportedly planning significant layoffs and budget cuts in marketing. Earlier reports also suggested Microsoft is considering restructuring Xbox, possibly spinning it off or making it a separate subsidiary.
This is not the first major workforce reduction at the company. In July 2025, Microsoft laid off nearly four per cent of its staff, one of its largest cuts in recent years.
Across the tech industry, layoffs have become common. Meta announced plans to cut 10 per cent of its workforce this year, while Amazon said it would eliminate about 16,000 jobs globally.
Microsoft has not yet confirmed the latest round of layoffs.
