Microsoft is preparing to initiate another round of major layoffs in July 2025, according to a recent Bloomberg report. This will mark the third wave of job cuts by the tech giant this year, and could impact thousands of additional employees—many of whom are believed to be in sales-related roles.
This announcement follows two significant rounds of layoffs earlier this year. In January, Microsoft eliminated 2,300 jobs, and in May, the company cut an additional 6,000 positions, affecting multiple divisions including its gaming segment. With 8,300 positions already lost, this new round of layoffs could make 2025 one of the most aggressive years of workforce reductions in Microsoft’s recent history—second only to the 10,000 job cuts made in early 2023.
“Microsoft is expected to announce the layoffs in July,” Bloomberg reported, noting that the company has declined to publicly comment on the matter.
In April, Microsoft informed employees that it would begin outsourcing parts of its sales department to third-party firms—a move that now appears to be directly tied to these upcoming job reductions. While the Xbox division is reportedly safe for now, the widespread nature of these cuts signals a broader structural overhaul.
💡 AI Expansion Amid Job Cuts
At the same time Microsoft is reducing its workforce, the company is doubling down on investments in artificial intelligence. Microsoft has made several acquisitions and partnerships in the AI space throughout 2024 and 2025, channeling billions into research, cloud infrastructure, and new enterprise tools powered by AI.
Industry analysts believe the shift suggests Microsoft is re-prioritizing its workforce to align with its AI-first strategy. Unfortunately, that shift has come at the expense of thousands of jobs, particularly in traditional roles like sales and support.
📉 Impact on Tech Industry and Economy
Microsoft isn’t alone in making these tough decisions. Other major tech companies—Meta, Amazon, and Google among them—have also issued large-scale layoffs in 2025, citing similar reasons: automation, rising costs, and a need to future-proof their businesses.
However, heavy job losses at tech giants like Microsoft are never a positive signal for the broader economy. While AI may drive long-term innovation, the immediate impact on thousands of workers and their families remains significant.