Microsoft is reportedly gearing up for another round of job cuts, with the latest layoffs expected to affect less than 2.5% of its global workforce. According to a Business Insider report citing people familiar with the matter, the company could announce the layoffs as early as next week.
Microsoft has not officially responded to the report, while Reuters said it was unable to independently verify the information.
According to the report, the planned layoffs could impact thousands of employees across multiple departments, including sales, consulting, and the Xbox gaming division. Despite the reports, Microsoft has declined to comment on the speculation.
As per Microsoft’s filing with the U.S. Securities and Exchange Commission (SEC), the company had approximately 228,000 full-time employees worldwide as of June 30, 2025. Even if fewer than 2.5% of the workforce is affected, the layoffs could still result in thousands of job losses.
The reported workforce reduction comes at a time when major technology companies are cutting costs while increasing investments in artificial intelligence (AI). Over the past year, several companies across the technology, media, and financial sectors have announced significant layoffs to reduce expenses and redirect resources toward AI infrastructure.
Meanwhile, Microsoft’s Xbox business has also been at the center of recent restructuring reports. Earlier this month, Bloomberg reported that the Xbox division could face substantial job cuts, along with reductions in marketing and other operational budgets. The company has also recently increased Xbox console prices across several global markets.
In a separate report, The Information claimed that Microsoft is evaluating multiple strategic options for its Xbox gaming business, including a possible restructuring or operating it as a wholly owned subsidiary.
If announced, this would not be Microsoft’s first major round of layoffs. In July 2025, the company revealed plans to reduce nearly 4% of its workforce, marking one of its largest workforce reductions in recent years.
Microsoft is not the only tech giant reducing headcount. Companies such as Meta and Amazon have also announced significant job cuts this year as the technology industry continues to balance cost-cutting efforts with increased investment in AI development and infrastructure.