Microsoft is planning another round of layoffs that could affect less than 2.5% of its global workforce, with an announcement expected as early as next week, according to a Business Insider report. The company has not yet commented on the report.
The job cuts are expected to impact thousands of employees, including roles in sales, consulting and the Xbox gaming division. Microsoft had around 228,000 full-time employees as of June 30, 2025, according to its filing with the US Securities and Exchange Commission (SEC).
The reported layoffs come as US companies continue to reduce headcount while increasing investments in artificial intelligence (AI) infrastructure. Earlier this month, Bloomberg reported that Xbox was preparing major job cuts and reductions in marketing and other budgets after Microsoft raised Xbox console prices, citing rising global component costs.
The Information also reported that Microsoft was exploring restructuring options for Xbox, including a potential spinoff or conversion into a wholly owned subsidiary.
In July 2025, Microsoft announced plans to lay off nearly 4% of its workforce, one of its largest recent job cuts. Other technology firms have also announced workforce reductions this year, with Meta planning to cut about 10% of its staff and Amazon targeting around 16,000 job eliminations globally.
