Microsoft is continuing its trend of layoffs, following a previous reduction of about 4% of its workforce in July 2025. This time, the company plans to cut approximately 2.5% of its employees, which translates to around 228,000 individuals. While the percentage is lower, it still represents a significant number of workers.
It is important to note that this information stems from an insider source and has not been confirmed by Microsoft. The layoffs will affect various departments, with the sales and consulting teams, along with the Xbox division, being the most impacted.
The Xbox division raises particular concerns, especially as Microsoft has increased the price of its consoles for the third time within a year, citing rising component costs. These factors may indicate underlying challenges within the Xbox division.
Although no official statement has been released, Microsoft's strategy aligns with trends seen among other major tech companies, which are reallocating resources from personnel expenses to capital investments in artificial intelligence data centers and chips. Additionally, Microsoft frequently mentions that advancements in Copilot and AI technology are rendering certain roles redundant.
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