Microsoft said it plans to lay off about 4,800 employees, representing 2.1% of its global workforce.
According to Jin10, Business Insider reported that Microsoft announced the planned layoffs on Monday, and that they will mainly affect the sales organization and the Xbox gaming business.
The company typically carries out layoffs around the start of its new fiscal year on July 1. Last year, Microsoft cut 6,000 jobs in May and another 9,000 in July, totaling about 4% of its workforce. Before the latest planned layoffs, Microsoft had more than 220,000 employees.
Microsoft is cutting costs while making large investments in AI infrastructure. The report said the company is also facing growing investor concerns that AI could disrupt traditional software businesses.
As part of its cost-cutting measures, Microsoft earlier this year introduced a voluntary retirement program offering buyouts to U.S. employees at level 67 and below who have 70 years or more of service. The report said about one-third of nearly 9,000 eligible employees accepted the buyouts, in line with expectations. It added that this has kept Microsoft’s layoff rate this year below last year’s level.
AI TRENDS | Microsoft Plans to Cut About 4,800 Jobs, Mainly in Sales and Xbox
2026-07-06 13:41:32
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