Microsoft to cut under 2.5% of workforce in latest layoffs, Business Insider reports

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, Mar 25, 2024. REUTERS/Gonzalo Fuentes/File Photo

Microsoft is planning to cut under 2.5% of its workforce in the latest round of layoffs that could be announced as early as next week, Business Insider reported on Tuesday, citing sources.

Reuters could not immediately verify the report.

US companies have continued to trim headcount in recent months, with a fresh wave of layoffs across the technology, media and finance sectors as firms rein in costs, while investing heavily in AI infrastructure.

Here are a few details:

The layoffs will impact thousands of roles, including sales and consulting, as well as jobs at the Xbox gaming division, the Business Insider report said.

Microsoft declined to comment on the report.

Microsoft had roughly 228,000 full-time employees as of Jun 30, 2025, according to an SEC filing last year.

Xbox, which raised prices of its gaming consoles worldwide, citing a deepening global components crisis, is planning major layoffs and significant cuts to marketing and other budgets, Bloomberg News reported earlier this month.

The Windows maker is also considering options for its Xbox gaming unit, including a potential spinoff or restructuring as a wholly owned subsidiary, The Information reported earlier in June.

In July 2025, the company said it would lay off nearly 4% of its workforce, in one of its largest layoffs in recent years.

Across the technology sector, Meta announced plans this year to cut 10% of its workforce, and Amazon laid out plans to eliminate roughly 16,000 jobs globally.