Microsoft is preparing to announce another round of layoffs that will affect thousands of employees across multiple parts of the company, according to reports citing people familiar with the plans. The cuts are expected to reduce roughly 2.1% of Microsoft’s global workforce, with figures cited around 4,800 roles, though the announcement timing could still change. Reported affected areas include sales and consulting, along with employment tied to the Xbox gaming business. Some employees may be offered new roles immediately as part of the restructuring.
Sources also describe the layoffs as smaller than the previous year’s reductions. Microsoft last year cut about 6,000 positions in May and then about 9,000 more in July, representing about 4% of its workforce.
The reported plan comes as Microsoft continues heavy spending on artificial intelligence infrastructure and cost control. Several outlets tie the restructuring to efforts to manage expenses amid ongoing AI-related capital investment, alongside concerns from investors about the pace and implications of AI spending. Earlier this year, Microsoft offered a voluntary retirement buyout program in the United States, and some eligibility and take-up figures were reported as contributing to lower percentage workforce reductions than the prior year.
Microsoft has stated that the layoffs are not due to AI directly replacing roles.
