Microsoft to cut under 2.5% of workforce in latest layoffs: report

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.