Microsoft is preparing to cut thousands of jobs worldwide in July as part of a fresh restructuring tied to its AI strategy, with roles in Xbox and sales among those expected to be hit, according to a report. The layoffs, which have not yet been publicly announced by the company, were detailed by sources and are expected to affect less than 2.5 per cent of Microsoft's workforce.
For context, July job cuts have become a grimly familiar pattern at the tech giant, whose financial year begins on 1 July. Microsoft laid off more than 9,000 staff last July and a further 6,000 in May 2025, as disclosed in previous company communications and regulatory filings. An SEC filing from 30 June 2025 showed Microsoft had about 228,000 employees, meaning even a sub‑2.5 per cent reduction still translates into several thousand people losing their jobs.
