Microsoft is reportedly preparing another significant round of layoffs that could affect more than 5,500 employees worldwide as early as next week, according to multiple media reports.
A report by Business Insider, citing sources familiar with the matter, said the planned job cuts would account for less than 2.5% of Microsoft’s global workforce. The layoffs are expected to impact several business units, including sales, consulting, and the Xbox gaming division, although the company has not officially confirmed the reports.
As of June 30, 2025, Microsoft employed approximately 228,000 full-time workers globally. If the reported figure remains below 2.5% of the workforce, the number of affected employees would likely stay under 5,700.
The reported restructuring comes as Microsoft continues to invest billions of dollars in artificial intelligence (AI) and cloud computing. The company has expanded its AI investments through its partnership with OpenAI while building new data centers around the world to meet rising demand for AI-powered services and cloud infrastructure.
Industry analysts say the move reflects a broader trend across the technology sector, where companies are shifting resources from traditional business operations to AI development, software engineering, and cloud technologies. Major technology firms, including Meta, Amazon, and Google, have also announced workforce reductions in recent years while increasing spending on AI initiatives.
The Xbox division is also expected to undergo further restructuring. Microsoft recently raised Xbox console prices in several markets and is reportedly reviewing marketing budgets and organizational structures as part of its wider cost-cutting strategy.
If confirmed, the latest layoffs would follow a series of workforce reductions announced by Microsoft over the past few years. In 2025, the company cut thousands of jobs across engineering and other departments as part of efforts to streamline operations and improve efficiency.
Despite the expected layoffs, Microsoft continues to deliver strong financial results, driven by rapid growth in its Azure cloud platform and AI business. The company remains focused on expanding its AI capabilities and strengthening its position as one of the world’s leading technology companies amid growing competition in the artificial intelligence sector.