Microsoft reportedly plans 2.5% layoff amid AI-focused reshuffle

TL;DR Summary
An insider says Microsoft plans to cut about 2.5% of its staff (around 228,000) across units including sales, consulting, and Xbox, as it shifts funding toward AI data centers, chips, and Copilot; the move isn’t officially confirmed and follows a prior 4% layoff in July 2025.
- Microsoft to cut 2.5% of its workforce in yet another round of layoffs - GSMArena.com news GSMArena.com
- Microsoft to cut under 2.5% of workforce in latest layoffs, Business Insider reports Reuters
- Microsoft layoffs 2026: cuts hitting sales, consulting, and Xbox qz.com
- Xbox weighs canceling Blade game and shuttering Arkane The Verge
- Microsoft plans thousands of job cuts, impacting less than 2.5% of workforce Business Insider
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