Microsoft Plans New Layoffs as AI Investment Reshapes Tech Spending
Synopsis
Key Highlights Microsoft to lay off about 2.5% of its worldwide workforce They could be announced as soon as next week. The firm didn’t comment on the reported layoffs. In the newest workforce reduction,…
Key Highlights
- Microsoft to lay off about 2.5% of its worldwide workforce
- They could be announced as soon as next week.
- The firm didn’t comment on the reported layoffs.
In the newest workforce reduction, Microsoft intends to eliminate less than 2.5% of its employees. Next week could see the company announce layoffs. They will affect thousands of employees from a variety of units, including sales, consulting and Xbox gaming.
Layoffs Follow Ongoing Cost-Cutting Efforts
The job cuts situation is reported at a time when many US companies are reducing headcount but increasing investment into AI infrastructure. As the expansion of AI capabilities continues to build, an all-new round of layoffs has swept across the tech, media and finance sectors, corporations striving to control costs even as better technology remakes their workforce.
On 30 June 2025, Microsoft had last filed its S-8 with the SEC, it had approximately 228000 full-time employees. In July 2025, the company announced that it would be reducing about 4% of its workforce, one of the largest job cuts a company has announced in years.
Xbox Division Also Faces Restructuring
Xbox announced more global console price increases, following huge cuts to marketing & other budgets in the wake of a deepening global components crisis. Microsoft was exploring strategic alternatives for its Xbox gaming business, including potentially spinning off the division or reorganising it as a wholly owned subsidiary.
Within the wider technology sector, Meta has announced that it will cut its workforce by 10% this year while Amazon detailed plans to axe around 16,000 positions worldwide.
Sources: Reuters
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