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

> **Open Intelligence Dossier** · First detected: 2026-07-01 18:07 UTC · Category: Technology

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

## Intelligence 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.

## Multi-Source Evidence Table
| Source Outlet | Headline | Verification URL |
|---|---|---|
| Yeni Safak English | Microsoft plans third major layoff round affecting thousands | [Source Link](https://news.google.com/rss/articles/CBMipwFBVV95cUxPZVY3SFlGbjVvbWdLc0RKek1DWW9rUERqX3g1MmxCOFNnWncwMDZUZThTanZrbkFNN0N3LTNpNkdJdzUyaW1ESXRNMFpVNHZNeHFtUHE1SG0xMDlzTjVkZHNiQnBnQWFTRXdPbVRYMFhCTEU3Zy1VSUF2SmRFdnVpZFB0S2UtS25ramlZSkFObHJHbDJJc3ZPT2pkMC1rb0RudlVBajdZdw?oc=5) |
| TechRepublic | Microsoft Layoffs Could Hit Thousands as AI Spending Climbs | [Source Link](https://news.google.com/rss/articles/CBMigwFBVV95cUxOYllQOVdTbTk1endSMWFVTk9QNkZ0R2lUall4dkljNmZMaHIyWnJuZFFuQXotdXZyYTM3TXUySWl5YVRnYVNET3hfMlF3TlJNOHFhcXR6d0g5Mk5oM2hSWHg3X2RqTWUzYjlCaXJkRTZ3Y2tpZUdYTko2SURCWmJnNUlJYw?oc=5) |
| Mashable | Xbox layoffs, studio closures could start in days | [Source Link](https://news.google.com/rss/articles/CBMia0FVX3lxTE5uT1V0ZWtKU005QXZYZ1ZMcmM2aHhDckIyYXRIMGZrdHBrOGx2Wm9jZDlHZ0hsYXhQY1VaclY2VjNsU1RrbEhGdllQSUZERENHaFExWlZfWHRMYmpFV2EzbTVnR0RYVVNIWk9B?oc=5) |
| The Verge | Xbox’s ‘reset’: all the news about Microsoft’s looming layoffs and studio closures | [Source Link](https://news.google.com/rss/articles/CBMifEFVX3lxTE5WaWZ3RGptTTQ4anVUQjMwQjY2cUQ2a09jUmhiT01TQ0FGaWRfS3FEY0dNOE5PcjNlb3ctTGNmNFhzTG5YM2tLdlR3eXY4QTdrLWNURzdXOUMwYU1scS1yd005NElRQjYycC14N0s1dEpieENxM0wxRzVjRFQ?oc=5) |
| qz.com | Microsoft layoffs 2026: cuts hitting sales, consulting, and Xbox | [Source Link](https://news.google.com/rss/articles/CBMie0FVX3lxTE5SMGhUT1dBYWpZM3JNMXc2cWhxX0d0eF82UmtYVXoyVVpfUU1xMG9vcXNKeW5VdnQyQXVuQk9STUoxeDNnNVM0eENETDVKZEpWX3JlLTEzNzJsWXJ3RWNkcFA0LVo5S1FfOWNhbzVLR3FOTGxyWU5Td0hLQQ?oc=5) |
| GSMArena.com | Microsoft to cut 2.5% of its workforce in yet another round of layoffs - GSMArena.com news | [Source Link](https://news.google.com/rss/articles/CBMiggFBVV95cUxOMWdTenV4Z2RzeE42UWRaaVo4dGlHanl1OGdpMzU3X0h1Mk5kVG1ONGZsdHI5ZHIwR0ctUWowQTNVTTNKRDRnRHlma1FQZzFQZUkyYWxGS0hsVUtwQTBPS3dKd2tCdUQ4MGJZZmY5WnBMZFViWktlb0xWdklCdzQtUGp30gF-QVVfeXFMUDQ2amZVd0Rtbjd5LTBuc3poSjJicXJHZGJGSk1aZVdPREpENFpOblNNSDlha3ZpT1plRmlFeF9mczFWemMwNVBjU2RyWjhWcVJaTUQ0UjZTQXFlVTRwNmplYm1aVVZoTFBHc3BkNy1pLTJuSGhEQ3R6TUd2bnhB?oc=5) |

---
*Canonical Source: https://pulse.byoviral.com/trend/2026-07-01/microsoft-to-cut-2-5-of-its-workforce-in-yet-another-round-of-layoffs*