Microsoft Set to Implement New Job Cuts Amid Cost-Cutting Measures
Upcoming Job Reductions at Microsoft
According to a report from Business Insider, Microsoft is preparing to announce further job reductions as part of its ongoing efforts to cut costs. This latest round of layoffs is expected to affect thousands of positions across various departments, including sales, consulting, and the Xbox gaming division. The anticipated job cuts are projected to be less than 2.5% of the company's total workforce. With approximately 228,000 full-time employees reported in June 2025, this could mean around 5,700 jobs may be impacted.
The announcement of these layoffs is likely to occur next week. Historically, Microsoft has made workforce adjustments at the beginning of its fiscal year, which starts on July 1. This strategy appears to be part of the company's broader initiative to manage expenses while simultaneously increasing investments in artificial intelligence. Industry experts have raised concerns about the potential disruption AI could cause to traditional software services, especially as Microsoft's stock has seen a nearly 17% decline over the past month.
In June, there were indications that the Xbox division was also bracing for significant job cuts, with suggestions that it might reduce marketing and other budgets. Additionally, reports from the same month indicated that Microsoft was exploring various options for its gaming business. Last July, the company had previously announced job cuts affecting nearly 4% of its global workforce, translating to around 9,000 positions. This move was part of a larger strategy to streamline operations, eliminate several management layers, and reorganize various business segments.
Over the past five years, Microsoft has reportedly reduced its workforce by nearly 30,000 jobs. The following table outlines the job cuts made by Microsoft from 2022 to 2026:
Job Cuts at Microsoft in the Last 5 Years (2022–2026)
| Year | Approx. Number of Jobs Cut | Key Details |
|---|---|---|
| 2022 | ~1,000 | Microsoft executed several smaller layoffs across consulting, Azure, and other teams in response to declining PC demand and economic uncertainty. |
| 2023 | 10,000 | In January 2023, Microsoft announced layoffs impacting about 5% of its workforce, citing shifts in economic conditions and customer spending. Additional smaller layoffs followed later in the year. |
| 2024 | ~2,900+ | Microsoft implemented targeted cuts, including 1,900 jobs at Xbox and Activision Blizzard in January and around 1,000 jobs across Azure and HoloLens in June, along with other smaller reductions. |
| 2025 | ~15,000 | Microsoft announced around 6,000 layoffs (less than 3% of its workforce) in May, followed by about 9,000 more in July (nearly 4% of employees), affecting Xbox, sales, engineering, and other divisions as it ramped up AI investments. |
| 2026(planned/reported) | Under 2.5% of workforce (thousands of jobs) | Business Insider reported that Microsoft is preparing for another round of layoffs affecting less than 2.5% of its workforce, including roles in sales, consulting, and Xbox. Microsoft has yet to officially confirm these reported cuts. |