EL7.AI
StocksUpdated×3•Originally published 30 June 2026•Updated 1 July 2026•
1 min read

Microsoft to lay off thousands next week in Xbox, sales, consulting divisions

Satya Nadella centered against an orange background with Microsoft logos, a folder labeled cost control, and documents.

Key Facts

1Business Insider reports that Microsoft plans to lay off less than 2.5% of its workforce in its latest round of job cuts.

Microsoft (MSFT) shares have fallen 21% year to date, on track for their worst start in two decades, as the company plans to lay off thousands of employees next week in its Xbox, sales, and consulting divisions, according to a Business Insider report. The reduction represents less than 2.5% of the total workforce and is part of a broader restructuring to reallocate resources toward artificial intelligence.

The new layoffs follow Microsoft's elimination of 6,000 jobs in May and 9,000 in July last year, about 4% of its workforce. Meanwhile, Bloomberg payroll data shows that sectors with rapid AI adoption are losing approximately 28,000 jobs per month. Goldman Sachs analyst Sarah Dong noted that the AI adoption rate across corporate America stands at around 20.6% and is increasing, justifying the ongoing restructuring.

MSFT shares are trading near multi-month lows, with investors focused on upcoming earnings and any updates on AI spending, which has exceeded $100 billion. These developments are likely to pressure the stock in the near term as management faces increased scrutiny over capital expenditure efficiency.