Microsoft to Reportedly Layoff Thousands Across XBOX, Sales, and Consulting Teams

Over the past few months, tech and gaming companies have been laying off employees while redirecting billions of dollars toward AI. Speaking of recent developments, XBOX has already been caught in the middle with reports of studio closures, budget cuts, and business reset.

Now, it looks like Microsoft’s restructuring efforts could soon expand far beyond its gaming division.

Microsoft reportedly plans to lay off less than 2.5% of its total workforce in the coming days

That’s according to a new report by Business Insider, which suggests that Microsoft is getting ready for another round of layoffs that could affect thousands of employees across the company. The report, citing people familiar with the matter, says the cuts are expected to impact sales, consulting, and XBOX. Apparently, the official announcement is planned as early as next week.

Unlike last year’s restructuring, this round is expected to be smaller. Per the news outlet, the layoffs will affect less than 2.5% of Microsoft’s roughly 220,000-person workforce, although that still translates into thousands of positions. Some employees whose roles are eliminated may reportedly be offered alternative positions within the company.

Speaking of XBOX, the latest report follows weeks of speculation surrounding Microsoft’s gaming business. Reports have already pointed to layoffs, internal restructuring, and uncertainty around several XBOX Game Studios. Earlier reports also suggested additional gaming division layoffs were expected shortly after Microsoft’s new fiscal year began.

Not to forget, the company introduced a voluntary retirement program for eligible U.S. employees, reducing the need for more workforce reductions this time around. As of now, Microsoft has not officially announced the layoffs, and the reported timeline could still change. Until the company confirms the plans, the details should be treated with a grain of salt.