Microsoft is reportedly preparing job cuts across sales, consulting and Xbox as it controls costs while increasing investment in artificial intelligence.
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Microsoft is reportedly preparing another round of that could affect thousands of employees. Sales, consulting and the Xbox gaming division are expected to be among the areas .
People familiar with the plans say the layoffs may affect less than 2.5% of Microsoft's global of about 220,000 people. That would still represent several thousand roles, although the final number and timing could change before an announcement.
The company is trying to while spending heavily on artificial intelligence infrastructure. Microsoft has committed large sums to data centers, chips and cloud capacity, creating pressure to find savings elsewhere in the business.
Sales and consulting teams may be reviewed as customers adopt more automated services and Microsoft changes how it sells AI products. Some affected employees could reportedly be offered , but details have not been confirmed.
Xbox is also expected to face another . The gaming division has already closed studios, cancelled projects and reduced staff in recent years. Its new leadership has spoken about a as hardware sales and some traditional revenue sources remain under pressure.
Microsoft often makes organizational changes near the beginning of its fiscal year, which starts on July 1. Last year it eliminated thousands of positions in separate rounds, including significant cuts within Xbox.
For employees, the uncertainty matters as much as the final total. A reported plan can change, but workers may still spend days waiting to learn whether their team is affected. Microsoft has not yet provided a detailed of the proposed reductions.
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