Microsoft has engaged in the layoff of 4,800 jobs acrocss its sales and Xbox division, according to a Bloomberg report on Monday, which cited an insider.
Half the layoffs are due to the tech giant's overhaul of their Xbox console gaming division, as per the report.
ALSO READ: Xbox Plans Significant Layoffs as New CEO Plans Overhaul
Business Insider previously reported that Microsoft is likely to announce fresh round of job cuts soon, due to the company's goals to control costs.
The layoffs were expected to impact thousands of jobs such as sales and consulting, along with roles at the Xbox gaming division, the report said. The latest round is likely to be smaller than similar layoffs last year. The job cuts are estimated to be less than 2.5% of the company's 220,000-person workforce.
Notably, some impacted employees are expected to be given new roles immediately. The tech giant had previously cut jobs around the beginning of its new fiscal on July 1.
In 2025, Microsoft slashed 6,000 roles in May and an additional 9,000 employees, or about 4% of the company's workforce, in July.
The job cut plan highlights Microsoft's efforts to rein in costs as it ramps up spending on AI, teh report said. It is also facing pressure from Wall Street over concern that AI could replace software services, including, in theory, some Microsoft offerings. The stock has tanked about 17% in last month.
ALSO READ: More Layoffs At Microsoft? Tech Giant Plans To Cut Jobs In Xbox, Sales & Consulting: Report
Apart from layoffs, Microsoft announced a voluntary retirement program, earlier this year, offering buyouts to employees level 67 and below in the US who had 70 or more years of age and service. Nearly, 7% of its 125,000 US workforce, or nearly 9,000 employees were eligible for the buyout.
Around one-third of eligible employees opted for the buyout, in line with expectations, the report said. This permitted Microsoft to reduce a lower percentage of its workforce compared to last year, it added.
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