Microsoft employees are bracing for another round of job cuts, with reports and posts on social media suggesting the company could eliminate thousands of roles as it continues shifting resources toward artificial intelligence investments.
According to Business Insider, Microsoft is expected to cut less than 2.5% of its global workforce, a move that could affect around 5,500 employees based on its headcount of approximately 228,000 as of June 30. The announcement could come as early as next week.
The planned reductions are expected to span several business units, including sales, consulting, and Xbox, although Microsoft has not officially disclosed how many jobs will be affected. The latest restructuring comes after the company cut nearly 4% of its workforce in July 2025.
As speculation grows, employees have begun sharing their experiences online. One Microsoft employee, posting anonymously on the professional networking platform Blind, said they felt more relieved than worried about the possibility of being laid off.
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According to the post, managers are expected to receive the final list of affected employees on July 30, with notifications likely to follow soon after. The employee said they had anticipated the outcome after being gradually removed from projects and receiving little communication from their manager. They also claimed that a colleague brought in to assist with ongoing work had no clear explanation for the changes.
On the other hand, the expected layoffs have also reignited debate over Microsoft’s hiring of foreign workers through the H-1B visa program.
One widely circulated post on X claimed that Microsoft has remained among the six largest H-1B sponsors in the United States since 2020 while continuing to reduce its domestic workforce.
“Microsoft has been the 6th largest H-1B filer in the country since 2020, bringing in foreign workers year after year even as it cuts American jobs.
Just months ago, it pushed quiet buyouts on older US staff. About a third of the 9,000 eligible took the exit. This round lands on top of that.
LinkedIn, which Microsoft owns outright, cut 875 jobs this year, about 5% of its staff, even as revenue grew 12% and they continued to file H-1B applications.
Xbox takes the hardest hit. Under new CEO Asha Sharma’s ‘reset,’ its layoffs are reportedly to be the largest single layoff in gaming history.
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Record profits, and still one of the top H-1B sponsors in America. Thousands of American jobs, gone.”
Another post included a chart tracking Microsoft’s Labor Condition Application (LCA) filing, which employers submit as part of the H-1B visa process. The data showed filings climbed steadily from FY 2015, peaking at 11,638 applications in FY 2021. The numbers then declined over the following years, falling to 9,309 in FY 2025. Preliminary figures for FY 2026 show 1,326 filings during the first quarter, suggesting the pace has stabilized rather than continuing to rise.
The upcoming layoffs reflect a broader trend across the technology sector, where companies are reshaping their workforces to free up resources for multibillion-dollar AI investments.
Microsoft has committed significant spending to expanding its AI infrastructure, even as it trims jobs in other parts of the business.