Microsoft is preparing another round of job cuts expected to affect thousands of employees across its sales, consulting and Xbox gaming divisions, according to a report by Business Insider.
The report, citing people familiar with the matter, said the layoffs could be announced as early as next week, although the timing remains subject to change.
According to the report, the workforce reduction will affect fewer than 2.5% of Microsoft’s approximately 220,000 employees worldwide, making it smaller than the company’s previous rounds of layoffs.
Some affected employees are expected to be offered opportunities to transition into other roles within the company.
The planned cuts continue Microsoft’s strategy of reducing costs while investing heavily in artificial intelligence infrastructure and products.
Business Insider reported that Microsoft has regularly adjusted its workforce at the beginning of its fiscal year, which starts on July 1.
Last year, the company eliminated 6,000 jobs in May before cutting an additional 9,000 positions in July, representing about 4% of its global workforce.
Earlier this year, Microsoft also offered voluntary retirement packages to eligible U.S. employees with long service records, although commission-based sales staff were excluded from the programme.
The report added that layoffs within Microsoft’s Xbox division have been widely anticipated following a memo from gaming division chief Asha Sharma calling for a strategic reset of the business.
