Microsoft laid off 4,800 employees Monday, including 600 in Washington. The layoffs accounted for approximately 2.1% of its workforce.

Microsoft is reportedly preparing another round of layoffs that could affect thousands of employees across sales, consulting and Xbox as it continues investing heavily in AI.

Microsoft layoffs may hit thousands as AI investment rises. Is this restructuring smart cost control or a quiet shift toward replacing human jobs?

June 30 (Reuters) - Microsoft is planning to cut under 2.5% of its workforce in the latest round of layoffs that could be announced as early as next week, Business Insider reported on Tuesday, citing sources.

Microsoft, which has had multiple layoff rounds in the past year, slipped in the ranking of Washington's largest employers.

The Microsoft layoffs are expected to affect workers in sales and consulting, and within the Xbox gaming division, in July 2026.

Microsoft is cutting around 4,800 jobs. The Xbox division is losing the most, with more than 3,000 people being laid off.