Microsoft is preparing to cut fewer than 2.5 per cent of its global workforce in a new round of layoffs that could be announced as early as next week, according to a Business Insider report published on Tuesday, citing people familiar with the matter. The reported reductions would affect thousands of employees across multiple business units, marking another significant workforce reduction by the technology company.
According to the report, the planned layoffs will impact roles in sales and consulting, along with positions within Microsoft’s Xbox gaming division. The scale of the reductions is expected to remain below 2.5 per cent of the company’s workforce, although the reported cuts would still amount to thousands of jobs based on Microsoft’s employee count.
Reuters said it could not immediately verify the Business Insider report. Microsoft declined to comment when contacted regarding the reported layoffs. According to a filing with the US Securities and Exchange Commission, the company employed approximately 228,000 full-time workers as of June 30, 2025.
The reported workforce reduction follows earlier reports of potential structural changes within Microsoft’s gaming business. Earlier in June, The Information reported that the company was considering several options for its Xbox division, including a possible spin-off or a restructuring that would place the gaming unit under a wholly owned subsidiary. Microsoft has not publicly confirmed those reported plans.
If announced, the latest layoffs would follow another major reduction disclosed by Microsoft in July 2025, when the company said it would eliminate nearly 4 per cent of its workforce. That move ranked among the company’s largest rounds of job cuts in recent years and reflected broader efforts to adjust staffing levels amid changing business priorities.
The latest reported reductions come as companies across the United States continue to reduce headcount in response to ongoing cost pressures. Businesses in the technology, media and financial sectors have announced successive rounds of layoffs in recent months as they seek to control operating expenses while directing significant resources toward artificial intelligence infrastructure and related investments.
Microsoft has been among several major technology companies balancing spending on AI development with broader cost-management measures. The reported layoffs suggest that workforce adjustments remain part of those efforts, although the company has not confirmed the details outlined in the Business Insider report.
The reported cuts, if implemented, would add to a continuing series of workforce reductions across the technology industry, where companies have been reshaping operations while increasing investment in AI capabilities. Sales, consulting and gaming are among the areas identified in the report as being affected, though Microsoft has not provided official information on the scope, timing or structure of the reported layoffs.
As of Tuesday, the company had not announced any new workforce reduction plans, and Reuters said it was unable to independently verify the report. Any formal announcement would provide the first official confirmation of whether the reported layoffs and the affected business units will proceed as described.
