Microsoft Layoffs 2025: Over 9,000 Jobs Cut Expected Soon, Xbox Team To Face The Impact Too

The tech layoffs in 2025 are not taking a break. The latest report suggests that Microsoft is planning to lay off around 9,100 employees. As per a report by CNBC, the latest layoff will impact less than 4 percent of its total global workforce. The Microsoft layoff is expected to affect several divisions. One of the most affected areas of the layoff is said to impact Microsoft’s gaming segment. That means the Xbox division will face the impact too, the report added. Also Read: Accenture Cuts 11,000 Jobs; Focuses On AI And New Skills?

As per the report, Xbox chief Phil Spencer sent out a memo to staff, explaining that the company is focusing on areas with long-term growth potential. As part of that shift, some teams are being shut down or scaled back, and layers of management are being removed to increase “agility.” He was clear that the decision is not a reflection on employee performance, but a necessary strategic move. Also Read: Salesforce Layoffs 2025: AI Cuts 4000 Jobs, Here's What CEO Marc Benioff Says

Who Else Is Affected?

It’s not just Xbox. King, the mobile game developer behind Candy Crush, is also laying off around 10% of its staff — about 200 people. Other units like Zenimax in Europe are reportedly facing job cuts too. These reductions follow a year where Microsoft already shut down multiple game studios and trimmed teams across divisions like HoloLens and Azure. Also Read: Oracle Layoffs: Over 100 Cloud Jobs Cut Amid Rising AI Costs

Microsoft says that those impacted will receive severance pay, extended health benefits, and job placement support. The company is also encouraging affected workers to apply for open roles within other departments.

Microsoft Layoffs In 2025

However, this is not the first time that the tech giant has cut thousands of jobs. Earlier in the year, Microsoft let go of more than 6,000 employees in May and at least 300 more in June. And this follows other significant layoffs throughout 2024 as well.

While the company remains one of the most profitable in the tech space, it reported nearly $26 billion in net income last quarter.