Microsoft to cut under 2.5% of workforce: report

Business Insider reported the news today, citing sources familiar with the matter. Reuters said it could not immediately verify the report, and Microsoft has so far declined to comment on the news.

The cuts will reportedly affect thousands of roles, including positions in sales and consulting, as well as jobs at the Xbox gaming division. Microsoft had around 228,000 full-time employees as of June 30, 2025, according to an SEC filing, meaning a cut of under 2.5% would affect fewer than roughly 5,700 roles, though exact figures have not been confirmed.

The report follows a wave of layoffs across the technology, media and finance sectors in the US, as companies look to control costs while continuing to invest heavily in AI infrastructure. It also comes weeks after Bloomberg reported that Microsoft’s Xbox division was planning major layoffs and significant cuts to marketing and other budgets, following global price rises for its gaming consoles blamed on a deepening components crisis.

Microsoft has carried out several rounds of job cuts over the past year as it reallocates spending toward AI and cloud infrastructure, including its Azure and Copilot product lines.

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