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Microsoft to cut 2.5% of its workforce in yet another round of layoffs

Microsoft has initiated its third major round of workforce reductions for 2026, impacting 2.5% of its total staff.

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The brief

Microsoft is preparing for a new wave of staff reductions affecting 2.5% of its global workforce. The cuts are set to impact employees across several departments, specifically targeting sales, consulting, and the Xbox division.

Coverage from Yeni Safak English, TechRepublic, Mashable, The Verge, qz.com, and GSMArena emphasizes that these reductions occur alongside significant corporate spending on artificial intelligence. Reports also highlight the potential for imminent studio closures within the Xbox gaming brand.

Future developments remain dependent on the official start date of the cuts, as coverage does not yet specify the exact timeline for the completion of these layoffs or the total number of studios affected.

Synthesized by PULSE from the headlines below under a strict no-invention contract. Updated 106d ago.

Quick answers

What percentage of the workforce will be cut?

Microsoft plans to reduce its workforce by 2.5%.

Which divisions are being impacted?

The reductions affect the sales, consulting, and Xbox divisions.

What is the stated reason for the increased spending mentioned in reports?

Coverage links the current fiscal environment to climbing expenditures on artificial intelligence.

Coverage (6)

Topics

Microsoft Xbox Layoffs Technology AI

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