Job cutbacks 2026: According to reports, Microsoft may declare layoffs in January

Microsoft May Announce Job Cuts in January, Report Says

Microsoft may be preparing for its first round of job cuts this year, according to a report by HR Digest. The report suggests that teams across Gaming, Azure, and Sales are likely to be impacted.

The information was first shared through a post on Blind, an anonymous professional networking platform, which claimed that between 5% and 10% of Microsoft’s workforce could be affected in the third week of January. The post cited efforts to reduce middle management layers and improve the ratio of individual contributors to managers as the possible rationale behind the move.

Microsoft has not officially commented on or confirmed the report.

As of June 2025, the technology giant had around 228,000 full-time employees globally. The company had also laid off nearly 15,000 employees last year.

Reports of potential layoffs come shortly after Microsoft, currently valued at about $3.64 trillion, announced plans to invest $17.5 billion in India over four years from 2026 to 2029 to support large-scale adoption of artificial intelligence. This investment builds on a previous commitment of $3 billion made in January 2025.

Separately, Reuters reported in September that Microsoft would require employees to work from the office at least three days a week. With the deadline approaching, employees living within 50 miles of the company’s headquarters are expected to begin on-site work by the end of next month.