Microsoft is preparing to eliminate less than 2.5% of its global workforce, a move that will affect thousands of employees across key divisions including sales, consulting, and the Xbox gaming unit.
The restructuring is expected to be announced as early as next week, according to reports from Business Insider, citing internal sources.
Microsoft shed more than $570 billion in market value during June alone, marking a stark reversal of its long-standing growth trajectory and raising questions about the sustainability of its premium valuation.
The decision comes at a critical juncture for the software giant, which has endured its worst monthly performance since the dot-com bubble burst in 2000.
Microsoft shed more than $570 billion in market value during June alone, marking a stark reversal of its long-standing growth trajectory and raising questions about the sustainability of its premium valuation.
The layoffs target roles in sales and consulting, suggesting a strategic pivot to improve operational efficiency and margin resilience.
The inclusion of the Xbox division indicates that the restructuring is not limited to core enterprise software but extends to consumer-facing hardware and gaming services, which have faced intensifying competition and shifting consumer spending patterns.