Microsoft is expected to announce a new round of layoffs next week, with several thousand jobs at stake, according to Business Insider. Among others, the company’s sales, consulting, and Xbox divisions will be affected.
The cuts are reported to affect less than 2.5% of Microsoft’s approximately 220,000 employees worldwide, meaning the layoffs will be less extensive than last year’s workforce reductions.
In 2025, Microsoft laid off approximately 15,000 employees in two rounds: 6,000 workers in May, followed by another 9,000 in July.
The company is reportedly rolling out the cost-cutting measures while continuing to boost investments in AI. Microsoft has faced increased pressure from investors regarding how AI will affect the company’s future business model and cost structure.
Earlier this year, the company for the first time in its history offered voluntary retirement buyouts to roughly 8,750 employees, or about 7% of its workforce.