Microsoft planning 2.5% cut in workforce in latest round of tech company layoffs - report

Microsoft is reportedly preparing for a new round of layoffs, aiming to cut under 2.5% of its global workforce, which could impact thousands of employees. Business Insider, citing sources, reported that the cuts might be announced as early as next week.

The planned reductions are expected to affect various departments, including sales and consulting roles, as well as positions within the Xbox gaming division. Microsoft has not yet commented on the report. The company had approximately 228,000 full-time employees as of June 30, 2025, according to a previous SEC filing.

This potential move by Microsoft occurs amid a broader trend of significant workforce reductions across the US technology sector. Companies like Meta and Amazon have recently announced substantial layoffs, as firms across technology, media, and finance sectors work to control costs while simultaneously investing heavily in artificial intelligence infrastructure.