Microsoft plans new Layoffs
Microsoft is planning to cut under 2.5% of its workforce in the latest round of layoffs that could be announced as early as next week, Business Insider reported on Tuesday, citing sources.
Less than 2.5% of the company's 220,000-person workforce, or fewer than 5,500 workers, will be axed from the sales and consulting divisions, as well as Xbox's gaming unit, according to Business Insider.
The Redmond, Wash.-based software giant plans to announce the layoff round next week, just after the start of its new fiscal year on Wednesday, though the timing could change, sources told the outlet.
Roles affected
The layoffs will impact thousands of roles, including sales and consulting, as well as jobs at the Xbox gaming division, the Business Insider report said.
Microsoft plans thousands of job cuts, particularly in sales, as it streamlines its workforce amid AI investments.
Some impacted employees will be offered new roles within the company immediately.
Microsoft declined to comment on the report.
It would represent its third biggest round of layoffs in just over a year, following the elimination of 6,000 jobs last May and another 9,000, which is 4% of its workforce, last July.
The software giant eliminated about 6,000 jobs in May 2025 before announcing another 9,000 layoffs in July.
The layoffs follow a May round affecting 6,000 employees and aim to boost AI leadership through $80 billion in capital expenditures.
