Preparation for layoffs again in Microsoft
A very worrying news has emerged for IT professionals working around the world. Tech giant Microsoft is once again going to do mass layoffs. According to media reports, the company is going to show the way out to about 2.5 percent of its employees from its global workforce. This will impact the livelihood of more than 5,000 employees working around the world. This tough decision is being taken at a time when the company is spending huge money on Artificial Intelligence (AI) technology. Employees associated with the company’s sales, consulting as well as gaming wing (Xbox) will suffer the most due to this new layoff. Currently Microsoft has an army of about 2,20,000 employees.
The increasing dominance of AI has become the enemy of jobs.
There is currently a huge storm of generative AI going on in the tech industry. Investors are beginning to fear that this new technology might completely destroy Microsoft’s traditional software business. Due to this huge pressure, the company is changing its strategy and investing heavily on AI infrastructure. Costs are being reduced to balance this new expense. Under this strategy, the company has also introduced a voluntary retirement program for its employees in America. This offer has been given to those people whose age and total years of service together have crossed the 70 mark.
Fall of stock market increased tension
Microsoft This time remains extremely challenging on many fronts. Within the last one month, the company’s stock has fallen by about 17 percent in the stock market. This huge fall has increased the uneasiness of investors. It is a bitter truth of the tech sector that whenever there is economic pressure on companies, the employees have to suffer the direct consequences by losing their jobs. Now Microsoft has also joined the ranks of companies like Google, Amazon, Meta and Oracle, which have already laid off thousands of people across the world. Let us tell you that till now no official confirmation has been given by Microsoft regarding this new layoff.
Gaming division hit by expensive products
In this wave of layoffs, the most turmoil has occurred in Microsoft’s Xbox gaming division. The cost of making hardware is becoming increasingly expensive. Due to this increasing expense, the company has had to drastically increase the prices of its consumer products by up to $150. To survive in the market, the Xbox team is reorganizing its department on a large scale. Their main goal is to control expenses by any means necessary so that they can align their resources with the company’s long-term AI strategy.
Thousands of jobs were lost last year also
This fear of losing jobs is nothing new for Microsoft employees. Last year i.e. in 2025 also the company had laid off people on a large scale. About 6,000 employees were shown the door in May 2025. Immediately after this, in the month of July also 9,000 more posts were cut. Overall, 15,000 people lost their jobs last year, which was about 4 percent of the company’s total workforce at that time.
