Microsoft to cut 2.5% of its workforce in yet another round of layoffs
Key Points:
- Microsoft is reportedly planning new layoffs affecting less than 2.5% of its approximately 228,000 employees, following a 4% workforce reduction in July 2025.
- The cuts are expected to impact multiple departments, with sales, consulting, and the Xbox division being the most affected areas.
- Concerns are rising about the Xbox division, which has already increased console prices three times in a year due to rising component costs, hinting at possible internal challenges.
- The move aligns with broader tech industry trends of reallocating funds from salaries to capital investments in AI data centers and chips.
- Microsoft also suggests that advancements in AI technologies like Copilot and AI agents are rendering some job roles obsolete.