Microsoft layoffs expected this July: Xbox, sales, and consulting roles hit
Microsoft is preparing to announce another round of layoffs later this month, continuing a pattern that has seen the tech giant reduce its workforce annually since July became the start of its fiscal year. While the percentage of employees affected remains small relative to the company’s massive size, the absolute number of roles eliminated will still reach into the thousands.
Scope and timing
Sources indicate that less than 2.5% of Microsoft’s total workforce will be impacted by this specific round of cuts. Based on an SEC filing from June 30, 2025, which listed approximately 228,000 employees, even a fraction of a percent translates to a significant number of individuals losing their jobs. The announcement is expected to come next week, though corporate plans can shift quickly.
This July restructuring follows a similar event last year, where Microsoft laid off over 9,000 people. The company also conducted a separate round of cuts in May 2025, affecting around 6,000 workers. These moves reflect broader industry trends as tech giants look to streamline operations and manage expenses amid heavy investments in artificial intelligence infrastructure.
Voluntary buyouts soften the blow
The impact of this July’s layoffs is reportedly lighter than it might have been due to a voluntary retirement program. Microsoft offered buyouts to U.S.-based employees at level 67 or below who met specific age and tenure criteria—specifically, those with 70 or more combined years of age and service. For example, a 50-year-old employee with 20 years at the company would qualify.
Approximately 9,000 employees were eligible for this offer, and about one-third accepted it. This voluntary exodus helps Microsoft reduce headcount without as many involuntary terminations, though thousands of roles in sales, consulting, and other areas are still expected to be cut.
Xbox division restructuring
The gaming division is seeing significant changes under Xbox CEO Asha Sharma. As part of a broader “100-day reset” strategy, Sharma is overseeing a restructuring that includes job cuts within the division. This aligns with her recent hiring of industry analysts to help shape long-term strategy and address challenges like memory shortages driven by AI demands.
While business decisions drive these organizational changes, the human cost remains high for those affected. For everyday Windows users, these internal shifts may eventually translate to changes in product support, gaming services, or enterprise consulting offerings, though immediate impacts on consumer software are unlikely.
Source: Windows Central
Over to you: Do you think these frequent layoffs will eventually impact the quality of support or features in Windows and Xbox services?
