Microsoft is preparing to cut fewer than 2.5 per cent of its global workforce in its latest round of layoffs, with the job cuts expected to be announced as early as next week, according to a Business Insider report. The planned reductions are likely to affect thousands of employees across sales, consulting and the Xbox gaming division as the technology giant continues to streamline operations while investing heavily in artificial intelligence.
Reuters could not immediately verify the report.
According to Business Insider, the layoffs will impact thousands of roles, including positions in sales, consulting and the Xbox gaming business.
Microsoft declined to comment on the report.
The company employed approximately 228,000 full-time workers as of June 30, 2025, according to its filing with the U.S. Securities and Exchange Commission.
The reported layoffs come amid a broader wave of workforce reductions across the technology, media and financial sectors as companies seek to curb costs while ramping up spending on AI infrastructure.
Bloomberg News reported earlier this month that Xbox is planning significant layoffs along with major reductions to its marketing and other budgets. The gaming division had also raised prices of its consoles worldwide, citing a deepening global components crisis.
Separately, The Information reported earlier in June that Microsoft is exploring strategic options for its Xbox gaming business, including a potential spinoff or restructuring it as a wholly owned subsidiary.
The latest round of job cuts would follow Microsoft's announcement in July 2025 that it would lay off nearly 4 per cent of its workforce, marking one of the company's largest workforce reductions in recent years.
The planned cuts also reflect a wider trend across the technology industry. Earlier this year, Meta announced plans to reduce 10 per cent of its workforce, while Amazon said it would eliminate roughly 16,000 jobs globally as major tech firms continue to reshape their operations.