Microsoft Reportedly Plans New Round of Layoffs, Thousands of Employees May Be Affected

Microsoft is reportedly preparing another round of job cuts, with the announcement expected next week, according to media reports. The planned layoffs are expected to affect less than 2.5% of the company’s global workforce.

Based on Microsoft’s filing with the U.S. Securities and Exchange Commission (SEC), the company had approximately 228,000 full-time employees as of June 30, 2025. If the reported plan proceeds, thousands of employees across multiple business units could be impacted.

According to reports, the layoffs are expected to affect employees in the sales, consulting, and Xbox gaming divisions. The move comes as many technology companies continue to streamline operations while increasing investments in artificial intelligence (AI).

Microsoft has been expanding its AI-related investments in recent years, even as it reduces headcount in other parts of the business. The reported workforce reduction is part of a broader trend across the technology sector, where companies are reallocating resources toward AI infrastructure and products.

Reports also indicate that Microsoft’s Xbox division may face significant layoffs and marketing budget reductions. Earlier media reports suggested the company has been evaluating structural changes for the gaming business, including the possibility of operating Xbox as a separate subsidiary. Microsoft has not officially confirmed these reports.

The reported layoffs would follow another major workforce reduction earlier this year. In July 2025, Microsoft announced layoffs affecting nearly 4% of its workforce, marking one of the company’s largest rounds of job cuts in recent years.

The technology sector has seen continued workforce reductions as companies adjust to changing market conditions. Earlier this year, Meta announced plans to reduce about 10% of its workforce, while Amazon said it would eliminate approximately 16,000 jobs globally.

At the time of publication, Microsoft has not officially confirmed the reported layoffs or provided details about the timing or scope of the proposed workforce reduction.