Microsoft is preparing to cut thousands more jobs in early July 2026, the latest chapter in a restructuring campaign that has already reshaped the company’s workforce. The cuts will reportedly impact less than 2.5% of Microsoft’s roughly 220,000 global employees, targeting non-core divisions while leaving frontline AI roles untouched.
The buyout program that started it all
The current wave of cuts follows Microsoft’s first-ever voluntary buyout program, announced in April 2026. That initiative targeted approximately 8,750 employees, roughly 7% of its US workforce.
The upcoming July reductions will extend beyond voluntary departures. Sales, consulting, and the Xbox division are among the areas expected to absorb the most impact.
Microsoft cut around 15,000 roles across 2025, including roughly 9,000 in July of that year alone. The headcount has been declining year-over-year as the company systematically redirects resources toward AI-driven operations.
