Microsoft NASDAQ:MSFT may be getting ready for another round of job cuts as it keeps shifting money and people toward AI.
Business Insider reported that the company is planning layoffs affecting less than 2.5% of its global workforce. Microsoft had about 228,000 full-time employees as of its June 2025 filing, so even a small percentage could still mean thousands of jobs.
The cuts could reportedly be announced as early as next week and may hit Xbox, sales and consulting teams. The timing also fits Microsoft's usual pattern of reshuffling after its fiscal year ends on June 30.
This round would still be smaller than Microsoft's July 2025 layoffs, when it cut about 9,000 jobs, or nearly 4% of staff.
Microsoft is still protecting margins while funding huge AI infrastructure spending. The next thing to watch is whether the company confirms the cuts and explains which businesses are being reshaped.