Microsoft Layoffs: Tech Giant Reportedly Plans New Job Cuts Across Xbox, Sales and Consulting Divisions
Microsoft is planning job cuts affecting less than 2.5% of its workforce, targeting sales, consulting, and Xbox divisions. This restructuring aims to manage costs as the company increases AI investment. A previous voluntary buyout programme helped limit the scale of these upcoming layoffs.
Microsoft is preparing to announce a new round of workforce reductions as the technology giant continues its efforts to streamline operations and manage costs. The anticipated cuts are expected to impact several thousands of employees across various departments, including sales, consulting, and the gaming division.
Upcoming MIcrosoft Layoffs Coming for 2.5%
The upcoming layoffs are projected to affect less than 2.5% of the company’s total workforce of approximately 220,000 employees. As per a report by Business Insider, these measures reflect a broader strategic initiative to control expenditure while the company accelerates its investment in artificial intelligence. While the exact timing remains subject to change, the announcement is expected to take place shortly. Xbox Layoffs: Microsoft Gaming Division Announces Major Job Cuts and Budget Slashes, Say Reports.
Strategic Shift Amid AI Focus
The restructuring comes at a time when Microsoft is facing pressure from investors concerned about the potential impact of AI on its core software services. In anticipation of these changes, the company previously offered a voluntary retirement programme to eligible staff in the United States, with approximately one-third of those invited opting to take the buyout. This participation helped the company reduce the total number of involuntary redundancies required compared to previous years. Salesforce Layoffs Severance: Company Offers Superior Severance Packages to Employees Affected by Recent Job Cuts; Check Details.
Impact on Gaming and Sales Divisions
Within the gaming sector, these adjustments are closely tied to the "reset" strategy recently outlined by new Xbox CEO Asha Sharma. Additionally, the planned reductions will impact sales and consulting teams, although the company reportedly intends to offer new roles to some affected employees. These developments highlight Microsoft’s continued emphasis on reallocating resources toward AI infrastructure while maintaining its competitiveness in a rapidly evolving market environment.
(The above story first appeared on LatestLY on Jul 01, 2026 07:23 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).