U.S. tech giant Microsoft has officially announced a layoff policy impacting 4,800 employees worldwide. The decision, which represents 2.1 percent of the company's total global workforce, is part of a major restructuring strategy to respond to increasingly competitive industry challenges.
In an internal message sent to all staff, Microsoft management explained that this move was taken to streamline the company's operations. The impact of these layoffs mostly targets the commercial sales division as well as the gaming business sector, Xbox. The company emphasized that this policy is an adaptation to changing customer preferences, not a direct impact of artificial intelligence (AI) technology replacing human roles.
Microsoft's Chief People Officer, Amy Coleman, stated that the company is committed to providing assistance to affected employees. The prepared compensation package includes severance pay, continued health benefits, and career transition support services to help former staff find new opportunities outside the company.
This efficiency measure comes amid a trend of tech giants making massive cost adjustments while continuing to prioritize investments in AI innovation. Previously, Microsoft also sought to reduce headcount through a voluntary retirement program launched in early 2026. According to the latest report as of June 2025, the company had approximately 228,000 full-time employees globally.
