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

It seems like Microsoft continues its series of layoffs, with the last one being in July 2025, when the company cut around 4% of its entire workforce. At least now the company plans to cut less than 2.5% of its employees, which is at approximately 228,000 right now, and that's still a lot of people.

Keep in mind that the information comes from an insider, and it's not an official statement from Microsoft. The layoff will cover various departments, but most affected will be the sales and consulting teams as well as the Xbox division.

The latter raises the most concerns since Microsoft has already hiked the price of its consoles for a third time within a year, citing rising component costs. Those could be signals for internal issues going on in the Xbox division.

Even though there's no official statement yet, Microsoft's strategy mimics that of other tech giants, which are redirecting their funds from salaries to capital expenditure on AI data centers and chips. Additionally, Microsoft often cites that Copilot and AI agents are making certain roles obsolete.

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