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Microsoft is reportedly preparing another round of job cuts as the technology giant continues to reduce costs while increasing investment in artificial intelligence, according to a Business Insider report published Wednesday citing people familiar with the matter.
The planned layoffs are expected to affect thousands of employees across several business units, including Microsoft's sales, consulting, and Xbox gaming divisions. The report said the company is targeting an announcement as early as next week.
Despite the scale of the reductions, the upcoming layoffs are expected to be smaller than Microsoft's workforce cuts last year. Business Insider reported that the layoffs will account for less than 2.5% of the company's global workforce, which currently stands at approximately 220,000 employees.
Microsoft has been reshaping its workforce over the past three years as it seeks to streamline operations, improve efficiency, and control operating expenses. The company has increasingly prioritized spending on artificial intelligence infrastructure, AI-powered products, and cloud technologies, making cost management a central part of its long-term business strategy.
The latest reported job cuts underscore a broader trend across the technology sector, where major companies continue to rebalance staffing levels while accelerating investments in AI. As competition in artificial intelligence intensifies, leading tech firms are redirecting resources toward high-growth areas, often accompanied by workforce restructuring.
While Microsoft has not officially confirmed the reported layoffs, the move would mark another step in the company's ongoing efforts to align its workforce with evolving business priorities. Investors and industry observers are expected to closely monitor the announcement for further details on the affected divisions, the number of employees impacted, and Microsoft's broader strategy for balancing cost discipline with continued AI expansion.
