Microsoft Reportedly Planning Significant Layoffs
Quick Look
- Microsoft is reportedly planning to cut under 2.5% of its workforce, impacting thousands of roles across sales, consulting, and the Xbox division.
- This follows recent layoffs in the tech, media, and finance sectors as companies invest in AI while cutting costs.
AI-generated summary
Why It Matters
U.S. companies are continuing to trim headcount across technology, media, and finance sectors. Firms are rein in costs while investing heavily in AI infrastructure.
U.S. companies have continued to trim headcount in recent months, with a fresh wave of layoffs across the technology, media and finance sectors as firms rein in costs, while investing heavily in AI infrastructure.
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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.
Reuters could not immediately verify the report.
U.S. companies have continued to trim headcount in recent months, with a fresh wave of layoffs across the technology, media and finance sectors as firms rein in costs, while investing heavily in AI infrastructure.
Here are a few details:
* 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 declined to comment on the report.
* Microsoft had roughly 228,000 full-time employees as of June 30, 2025, according to an SEC filing last year.
* Xbox, which raised prices of its gaming consoles worldwide, citing a deepening global components 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 spinoff or restructuring as a wholly owned subsidiary, The Information reported earlier in June.
* In July 2025, the company said it would lay off nearly 4% of its workforce, in one of its largest layoffs in recent years.
* Across the technology sector, Meta announced plans this year to cut 10% of its workforce, and Amazon laid out plans to eliminate roughly 16,000 jobs globally.
(Catch all the Technology News News, and Latest News Updates on The Economic Times.)
What to Watch
AI outlook — possibilities, not facts
Microsoft will officially announce the layoffs next week.
Likely · Within days
Open Questions
- What is the exact number of employees affected?
- What is the timeline for these layoffs?
- Will there be further restructuring beyond layoffs?
