Reportedly, Microsoft is preparing layoffs affecting 2.5% of its workforce, [approximately 5,500 employees out of 220,000](https://winaero.com/business-insider-microsoft-plans-to-cut-about-5500-jobs/). 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.