Microsoft may lay off over 5,000 employees next week, big job cuts at Xbox expected
Microsoft is reportedly planning for a latest round of layoffs that may impact thousands of workers globally. The tech giant is expected to cut as much as 2.5 per cent of its workforce, which is said to have around 2,20,000 employees, translating to roughly 5,500 roles.
Microsoft is expected to announce a fresh round of layoffs as early as next week. The tech giant is one of the biggest tech companies in the world, with big investments planned for AI. And, a new report says that Microsoft will likely cut thousands of jobs as it tries to save costs elsewhere while making these investments.
As per a report from Business Insider, Microsoft is likely planning to cut just under 2.5 per cent of its global workforce, which has around 2,20,000 workers. That is, roughly 5,500 employees may be impacted by this decision.
Keep in mind that this is not the first time Microsoft is cutting back its workforce. Last year, the company laid off roughly 15,000 roles between May and July, accounting for 4 per cent of its global workforce at the time. The company also offered voluntary exits to around 8,750 eligible employees earlier this year.
Microsoft declined to comment when contacted by India Today Tech.
Which roles may be impacted by Microsoft’s next layoffs?
The report indicates that this round of layoffs is likely to affect employees across several divisions, including sales, consulting and the Xbox gaming division. Xbox’s new CEO Asha Sharma recently announced a reset for Xbox, which sparked rumours of potential layoffs in the gaming division.
It is believed that some impacted workers may be given the option for new roles immediately. The report also says that the 2.5 per cent impacted roles is a figure that could’ve been higher if Microsoft had not offered voluntary exits earlier this year. Out of 8,750 workers who received the option, about one-third reportedly chose to leave the company – in line with Microsoft’s expectations.
This move comes at a time when Microsoft is said to be controlling operating costs while increasing investment in AI. The company is said to be spending billions of dollars on AI and cloud infrastructure as it competes in the hotly contested AI space.
Microsoft is not the only company that has laid off workers as it invests more in AI. In May, Meta cut around 8,000 jobs, or roughly 10 per cent of its global workforce. Companies such as Oracle, Amazon, and PayPal have also laid off thousands of workers.
As per Layoffs.fyi, tech companies have laid off a total of 122,524 workers so far in 2026. To give you some context, companies cut a total of 124,636 jobs in all of 2025.
Microsoft is expected to announce a fresh round of layoffs as early as next week. The tech giant is one of the biggest tech companies in the world, with big investments planned for AI. And, a new report says that Microsoft will likely cut thousands of jobs as it tries to save costs elsewhere while making these investments.
As per a report from Business Insider, Microsoft is likely planning to cut just under 2.5 per cent of its global workforce, which has around 2,20,000 workers. That is, roughly 5,500 employees may be impacted by this decision.
Keep in mind that this is not the first time Microsoft is cutting back its workforce. Last year, the company laid off roughly 15,000 roles between May and July, accounting for 4 per cent of its global workforce at the time. The company also offered voluntary exits to around 8,750 eligible employees earlier this year.
Microsoft declined to comment when contacted by India Today Tech.
Which roles may be impacted by Microsoft’s next layoffs?
The report indicates that this round of layoffs is likely to affect employees across several divisions, including sales, consulting and the Xbox gaming division. Xbox’s new CEO Asha Sharma recently announced a reset for Xbox, which sparked rumours of potential layoffs in the gaming division.
It is believed that some impacted workers may be given the option for new roles immediately. The report also says that the 2.5 per cent impacted roles is a figure that could’ve been higher if Microsoft had not offered voluntary exits earlier this year. Out of 8,750 workers who received the option, about one-third reportedly chose to leave the company – in line with Microsoft’s expectations.
This move comes at a time when Microsoft is said to be controlling operating costs while increasing investment in AI. The company is said to be spending billions of dollars on AI and cloud infrastructure as it competes in the hotly contested AI space.
Microsoft is not the only company that has laid off workers as it invests more in AI. In May, Meta cut around 8,000 jobs, or roughly 10 per cent of its global workforce. Companies such as Oracle, Amazon, and PayPal have also laid off thousands of workers.
As per Layoffs.fyi, tech companies have laid off a total of 122,524 workers so far in 2026. To give you some context, companies cut a total of 124,636 jobs in all of 2025.
