US companies have continued to trim headcount in recent months, with a fresh wave of layoffs across the technology, media and finance sectors as firms rein in costs, while investing heavily in AI infrastructure.
The layoffs will impact thousands of roles, including sales and consulting, as well as jobs at the Xbox gaming division, the Business Insider report said on Tuesday, citing sources.
Reuters could not immediately verify the report. Microsoft did not immediately respond to a request for comment outside regular business hours.
Microsoft said it had about 228,000 full-time employees as of June 30, 2025, according to an SEC filing.
Xbox, which raised prices of its gaming consoles worldwide, citing a deepening global components crisis, is planning major layoffs and significant cuts to marketing and other budgets, Bloomberg News reported earlier this month.
The Windows maker is also considering options for its Xbox gaming unit, including a potential spinoff or restructuring as a wholly owned subsidiary, The Information reported earlier in June.
In July 2025, the company said it would lay off nearly four per cent of its workforce, in one of its largest layoffs in recent years.
Across the technology sector, Meta announced plans this year to cut 10 per cent of its workforce, and Amazon laid out plans to eliminate roughly 16,000 jobs globally.
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