Microsoft to layoff over 5,000 employees across teams

In a significant move, Microsoft is anticipated to implement a new wave of layoffs that could affect approximately 5,000 employees, which represents nearly 2.5% of its global workforce. This decision, reported by Business Insider, is expected to impact various departments, including sales, the Xbox gaming division, and consulting services, as the tech giant continues to heavily invest in its Artificial Intelligence (AI) infrastructure. Currently, Microsoft employs around 220,000 individuals, meaning this latest round of job cuts could see over 5,000 positions eliminated worldwide. Notably, this year's layoffs are projected to be less severe than those executed in the previous year. Additionally, the company has previously offered a voluntary retirement program to U.S. employees, enabling those whose combined age and years of service reached 70 to opt for retirement. This restructuring initiative is part of Microsoft's broader strategy to manage costs while pushing forward with its AI investments. In May 2025, the company laid off about 6,000 employees, followed by another 9,000 in July, totaling around 15,000 job losses, or roughly 4% of its workforce at that time. The tech giant is currently under increasing scrutiny from investors who are concerned that advancements in generative AI may overshadow its traditional software business. Compounding these challenges, Microsoft's stock has experienced a decline of approximately 17% in the past month. The company is not alone in this situation, as many other major tech firms such as Google, Amazon, Meta, and Oracle are also making substantial workforce reductions. Additionally, the Xbox division is facing its own set of challenges, recently announcing price increases of up to $150 for its consumer products due to rising hardware costs. This restructuring not only aims to cut expenses but also seeks to align resources more effectively with Microsoft's long-term AI ambitions.