Microsoft is preparing to announce another round of job cuts next week that is expected to affect thousands of roles, according to people familiar with the situation cited by Business Insider and summarized by other outlets. The planned reductions are described as smaller than prior rounds, with estimates suggesting they will impact less than 2.5% of Microsoft’s roughly 220,000-person global workforce. The cuts are expected to touch multiple parts of the company, including sales and consulting roles, as well as jobs tied to its Xbox gaming division. Some employees may be offered new roles immediately as part of the restructuring, though the exact timing and scope are reported to remain subject to change.
The company’s decision is presented in the reporting as part of broader cost-control efforts while Microsoft continues to invest heavily in AI infrastructure. One outlet also notes that Microsoft has previously used reductions around its fiscal-year cycle. In addition, Microsoft earlier this year launched a voluntary retirement program for certain U.S. employees, offering buyouts to help manage headcount; reporting indicates that participation rates helped reduce how much of the workforce would need to be cut compared with the prior year.
