Microsoft is preparing another round of layoffs, with cuts expected to hit less than 2.5% of its roughly 220,000-person global workforce during the week of July 6. The reductions will primarily touch roles in sales, consulting, and the Xbox gaming division.
What is actually happening
The upcoming cuts represent a smaller scale of reduction compared to previous rounds Microsoft executed in 2025. Notifications to affected employees are expected to go out during the week of July 6-10.
The Xbox cuts carry a different logic. Microsoft’s gaming division has faced sustained financial pressure, and leadership has made clear that the unit needs to operate on a sustainable business model.
This latest round follows a voluntary retirement program Microsoft launched in April 2026, the first such initiative in the company’s history. That program targeted roughly 8,750 eligible US employees, approximately 7% of its domestic workforce.
