Reportedly, Microsoft is preparing layoffs affecting 2.

Reportedly, Microsoft is preparing layoffs affecting 2.5% of its workforce, approximately 5,500 employees out of 220,000. The official announcement is expected next week, targeting sales, consulting, and Xbox divisions, though other positions may be included.

Over the past two years, Microsoft has executed multiple layoff waves: 3% (6,000 employees) in May 2025 and 9,000 in July. Subsidiaries are also affected; this year, LinkedIn lost 5% of its workforce.

Additionally, in April, Microsoft launched a voluntary retirement program with substantial compensation. The offer targeted veterans whose age and service length combined reached 70 years or more. Approximately 9,000 US employees (7% of the workforce) met these criteria; one-third accepted and agreed to retire.