Microsoft tipped to slash workforce in latest layoffs
Microsoft plans to cut less than 2.5 percent of its workforce in the latest round of layoffs, which could be announced as early as next week, Business Insider reported.
US companies have continued to reduce headcount in recent months, with a new wave of layoffs in the technology, media and finance sectors as they rein in costs while investing heavily in artificial intelligence infrastructure.
The layoffs will affect thousands of positions, including sales and consulting, as well as jobs in the Xbox gaming division, Business Insider reported Tuesday, citing sources.
Reuters could not immediately confirm the report. Microsoft did not immediately respond to a request for comment made outside normal business hours.
Microsoft said it had approximately 228,000 full-time employees as of June 30, 2025, according to SEC filings.
Xbox, which has raised prices of game consoles worldwide, citing a deepening global component crisis, is planning major layoffs and significant cuts to marketing and other budgets, Bloomberg News reported earlier this month.
The Windows maker is also considering options for its Xbox gaming unit, including a potential spin-off or restructuring into a wholly owned subsidiary, The Information reported in early June.
In July 2025, the company announced it would lay off almost four percent of its workforce in one of the largest layoffs in recent years.
Across the tech sector, Meta announced plans to cut 10 percent of its workforce this year and Amazon announced plans to eliminate nearly 16,000 jobs worldwide.
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