Microsoft Reportedly Preparing Another Round of Job Cuts Affecting Less Than 2.5% of Staff

Microsoft is reportedly preparing another round of workforce reductions that could affect fewer than 2.5% of its employees, according to a Business Insider report published on Tuesday. The report said the announcement could come as early as next week, citing people familiar with the matter.

According to the report, the planned cuts are expected to impact thousands of positions, including roles in sales, consulting, and the Xbox gaming division. Microsoft did not comment on the reported plans.

The company employed approximately 228,000 full-time workers as of June 30, 2025, based on its previous SEC filing.

The reported move comes as businesses across the technology, media, and financial sectors continue to reduce headcount while increasing spending on artificial intelligence infrastructure.

Earlier this month, Bloomberg News reported that Xbox was preparing significant layoffs along with reductions in marketing and other budgets. Separately, The Information reported that Microsoft has been evaluating possible structural changes for its Xbox business, including a spinoff or operating it as a wholly owned subsidiary.

In July 2025, Microsoft announced plans to reduce nearly 4% of its workforce. Other major technology companies have also announced workforce reductions this year, including Meta, which planned to cut 10% of its staff, and Amazon, which outlined plans to eliminate around 16,000 jobs worldwide.