Microsoft is expected to announce the next round of layoffs soon. Less than 2.5% of the company’s workforce will be affected, according to sources who spoke to the company. Business Insider. At Microsoft’s size, even this small percentage means thousands of people will be affected.
An SEC filing dated June 30, 2025 indicated that Microsoft has approximately 228,000 employees. That number has since changed, but it gives the size of Microsoft’s full-time workforce.
Division cuts and AI infrastructure
The round of cuts will affect thousands of roles in sales, consulting and the Xbox division. Microsoft is expected to announce the layoffs next week, though plans are subject to change.
Layoffs in July have become common for Microsoft because the company’s fiscal year begins on July 1. Over 9000 cuts It was developed by Microsoft last July. Microsoft also lays off employees at other times of the year, e.g In May 2025, 6,000 were laid off.
Microsoft is one of many tech giants looking to downsize and cut costs in certain areas. It has increased AI costs and the rise of artificial intelligence have affected jobs on several levels.
Voluntary scholarships mitigated the effects
The layoffs are expected to be lower this July due to the voluntary retirement of several employees. Microsoft offered the buyout to employees 67 and under with 70 or more combined years of service and age in the United States (such as a 50-year-old who has worked at Microsoft for 20 years).
According to Business Insider, about 9,000 Microsoft employees were eligible for the buyout, and about a third of those eligible were bought out.
Xbox reset
Layoffs were expected, and not just because they’ve become an annual occurrence. Xbox CEO Asha Sharma oversees Rebuilding the Xboxmost of which will occur within a 100 day reset.
As with all layoff stories, I understand business decisions that lead to layoffs but feel bad for the affected employees.
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