Microsoft will be laying off about 4% of its workforce, which is about 9,000 employees. It is unclear if any of those jobs are across the Bing, Copilot or Microsoft Advertising businesses, or any search-related business. It does seem like the hardest hit by this are those in the Xbox division but others are impacted.
CNBC reported, "Microsoft said Wednesday that it will lay off about 9,000 employees. The move will affect less than 4% of its global workforce across different teams, geographies and levels of experience, a person familiar with the matter told CNBC."
This comes weeks after Google held a buyout program, to reduce its workforce. This also came after Microsoft cut about 6,000 jobs in May and over 300 jobs in June.
The Verge posted the email Phil Spencer sent out to its employees:
Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.
HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.
I did ask some folks I know at Microsoft and so far I have not heard of any layoffs there:
Thanks for checking in! All is ok here but sad for those impacted.
— Microsoft Ads Buddy (@MSFTAdsBuddy) July 2, 2025
Forum discussion at X.
