Microsoft plans to lay off between 5,000 and 5,700 employees in July 2026. This reduction represents less than 2.5% of the company's global workforce. The job cuts will primarily impact the sales, consulting, and Xbox gaming divisions.
The move follows significant workforce reductions in 2025. This strategy prioritizes high-impact areas and AI fluency as part of a recurring fiscal-year restructuring.
The Xbox division is undergoing a strategic overhaul following the acquisition of Activision Blizzard. This restructuring addresses recent revenue declines within the gaming sector. No market reaction to the news has been reported.