Microsoft layoffs 2026: Sales, Xbox teams may face job cuts SOON

Microsoft Layoffs: Microsoft doesn’t seem to stop for layoffs. The tech giant is reportedly preparing for another round of layoffs. After cutting thousands of jobs last year, a report by Business Insider suggests that Microsoft may soon announce another job cut around, although this time it may not be as large.  Also Read: GTA VI pre-orders: Xbox rejects reports that PS5 is winning by a huge margin

According to the report, Microsoft is expected to cut less than 2.5 percent of its global workforce. While the company has not officially confirmed the move yet, the reported layoffs could affect thousands of employees across different teams, including sales, consulting, and Xbox.  Also Read: Xbox Series X and Series S price hike announced ahead of GTA 6 launch: Check new prices here

Who will be affected?  

As per reports, Microsoft currently has around 228,000 employees globally. Even though the expected reduction is said to be below 2.5 percent, it could still impact thousands of jobs. The report suggests that the announcement could happen as early as next week, although the timeline may still change. It also mentions that some employees may be offered different roles within the company instead of being laid off completely.  Also Read: Oracle cuts 21,000 jobs as AI investments accelerate

This would be another major workforce reduction for Microsoft after multiple rounds of layoffs over the past year.

The reported layoffs are expected to go beyond one department. Apart from sales and consulting teams, Microsoft’s Xbox gaming division is also likely to be affected. Reports around Xbox restructuring have been circulating for some time now, especially after the company increased Xbox console prices in several markets and reportedly reviewed different options for its gaming business.

While Microsoft has not commented on these reports, this would be another significant change for its gaming division if the layoffs go ahead.

Why is Microsoft cutting jobs again? 

The reported layoffs come as Microsoft continues to invest heavily in artificial intelligence. Like many technology companies, Microsoft is spending billions of dollars on AI infrastructure while trying to manage overall costs. The company has also been under pressure from investors as competition in the AI space continues to grow.

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Earlier this year, Microsoft also introduced a voluntary retirement programme for eligible employees in the US. According to reports, around one-third of eligible employees accepted the offer, which may have helped reduce the number of compulsory layoffs this time.