Microsoft NASDAQ:MSFT is preparing another round of layoffs that could affect fewer than 2.5% of its global workforce, with the changes expected to be disclosed as early as next week.
Microsoft stock rose more than 1% on Tuesday trading.
The company employed about 228,000 full-time workers as of its latest annual filing. The reported reductions are expected to span several business units, including Xbox, sales and consulting, as Microsoft continues reviewing its organizational structure following the close of its fiscal year on June 30.
Microsoft is also evaluating changes to its Xbox business, including a possible restructuring, according to earlier reports. The latest workforce actions would follow a broader effort to reallocate spending while supporting continued investment in artificial intelligence infrastructure. Last year, the company reduced nearly 4% of its workforce, or about 9,000 positions.
The reported move reflects a wider trend across the technology sector as companies adjust operating costs while expanding AI-related investments. Peers including Meta Platforms (META) and Amazon (AMZN) have also carried out workforce reductions in recent months.