Bad news for Microsoft employees, tech giant plans to lay off thousands again due to..., worst hit sectors are...

Layoffs after layoffs! Tech giant Microsoft is preparing for another round of 'substantial' lay offs of thousands of employees  worldwide, this coming week. This is Microsoft's fourth round of job cuts within last 18 months. The layoffs are part of the broader corporate reorganization that aligns with Microsoft's fiscal year-end on June 30. This comes amid other tech giants like Google and Amazon, are also significantly downsizing their workforce to reduce the corporate costs and pushing towards AI. As per Laysoffs.fyi, over 61,000 individuals have been laid off in 2025.

As per reports, Xbox and Global Sales divisions are expected to be the worst hit in this upcoming wave of layoff. Xbox will again feel the heat of the situation as it has previously been hit severely in other three rounds of layoffs. However, exact numbers of employees expected to get affected is not confirmed yet. However, many this round will reportedly reduce a massive workforce. 

Pressure on Xbox to deliver profits

Microsoft acquired gaming giant Activision Blizzard in 2023 in a deal worth $69 billion. this was aimed to elevate Xbox more, however the results were not as expected. This has now put immense pressure on Xbox to deliver profitability. “The expectations on Xbox have skyrocketed since the Activision deal, It’s no longer just a content platform; it’s expected to drive significant growth,” as per report sources.

Over 2500 professionals has already been laid off in previous rounds, as 1900 were laid off in January 2024, 650 in Septmeber 2024. Microsoft also have shut down studios, including Tango Gameworks (creators of Hi-Fi Rush) and Arkane Austin (behind Redfall). Moreover, Microsoft is also eyeing Xbox's distribution across Central Europe. Mnay regional operationsa r also slated to get shut down permanently as Microsoft readies next-generation console in partnership with AMD.

Sales and Marketing among worst-hit

Over 45000 people are currently present in Microsoft's Global Sales and Marketing division, however previous rounds of layoffs have significantly reduced the numbers. Tech giant has reduced over 6000 roles, then another 300 roles in the division to "faltten management layers" and reduce administration overheads. Not only sale, Tech sector is also going to get affected this layoff season. Over 61,000 layoffs reported across major firms in 2025.

Microsoft leaning towards AI

Microsoft has announced earlier that it aims to reduce 3% of its global workforce, i.e. around 228,000 employees. The growing interest and investment of Microsoft in artificial intelligence is cited one of the reason of back to back layoffs. Microsoft is planning to invest up to $80 billion in AI infrastructure and data centers this fiscal year, a staggering amount that is about to get compensated with cost-cuttings. Other reasons of the layoffs can be inflammation, predicted recession and reducing headcounts and 'extra' roles.