Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. <\/p>\n
Microsoft Corp. is reportedly preparing to announce another round of layoffs next week, with thousands of employees across sales, consulting and its Xbox gaming business expected to be affected. <\/p>\n
Microsoft Reportedly Preparing Smaller Layoffs Than Last Year <\/p>\n
Microsoft is planning workforce reductions expected to affect thousands of employees, though the cuts are projected to be smaller than those announced last year, Business Insider reported on Tuesday, citing people familiar with the matter. <\/p>\n
The layoffs are likely to affect less than 2.5% of Microsoft’s roughly 220,000-person global workforce. The company could announce the reductions as early as next week, though the timing may change. <\/p>\n
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Some employees whose roles are eliminated could be offered other positions within the company immediately, according to one of the people cited in the report. <\/p>\n
The expected layoffs are said to primarily target sales, consulting and Microsoft’s Xbox gaming division. <\/p>\n
In an emailed communication, Benzinga was informed that Microsoft had “nothing to share” on this report. <\/p>\n
AI Investment And Cost Controls Drive Workforce Changes <\/p>\n
The latest workforce reduction comes as Microsoft continues to increase spending on AI infrastructure and services while looking for ways to control operating costs. <\/p>\n
Earlier this year, Microsoft introduced a voluntary retirement program for eligible U.S. employees with long service histories. Approximately 9,000 employees qualified for the program, representing about 7% of the company’s U.S. workforce, the report said. <\/p>\n
Roughly one-third of eligible employees accepted the buyout offer, reducing the need for deeper layoffs compared with last year, according to one person familiar with the matter. <\/p>\n
Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time<\/a> <\/p>\n Layoffs Surge As AI Infrastructure Investments Accelerate <\/p>\n The tech industry has seen a sharp rise in layoffs as companies ramp up spending on AI infrastructure, with more than 81,000 jobs eliminated during the first quarter of 2026. <\/p>\n Several technology companies have linked recent workforce reductions to their growing adoption of AI. <\/p>\n In May, Cloudflare Inc. said its decision to cut 20% of its workforce was driven in part by increased use of AI tools, while Cisco Systems Inc. said AI-related changes factored into its plan to eliminate about 4,000 jobs. <\/p>\n During the same month, Meta Platforms, Inc. laid off about 8,000 employees, or roughly 10% of its workforce. The company has also scrapped plans to fill approximately 6,000 open positions. <\/p>\n Coinbase Global Inc. and Block Inc. have also announced sizable layoffs as they expand the use of AI across their businesses. <\/p>\n However, not everyone believes AI is already the primary driver of widespread job cuts. In May, Nvidia Corp. CEO Jensen Huang criticized executives who attribute layoffs to AI. <\/p>\n Huang described such explanations as “lazy” and argued that companies have not yet deployed AI at a scale that would justify replacing large segments of their workforce. <\/p>\n Photo: gguy \/ Shutterstock <\/p>\n Read Next:\u00a0 <\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. <\/p>\n Arrived <\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly. <\/p>\n FarmTogether <\/p>\n Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000<\/a> \u2014 fully managed, with no landlord headaches. <\/p>\n Fundrise <\/p>\n Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate<\/a> and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth. <\/p>\n Realberry <\/p>\n Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities <\/a>backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests. <\/p>\n Immersed <\/p>\n Immersed is building technology for the future of work through spatial computing<\/a>. Known for its AR\/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing. <\/p>\n BluSky AI <\/p>\n The rapid adoption of artificial intelligence is creating significant demand for data centers, power, and compute infrastructure. BluSky AI is building modular AI data centers designed to support next-generation AI workloads while aiming to reduce deployment timelines compared to traditional facilities. <\/a>For investors looking beyond AI software and applications, the company offers exposure to the infrastructure layer that makes artificial intelligence possible. <\/p>\n ARK7 <\/p>\n Residential real estate has historically provided investors with income potential and long-term appreciation, but direct ownership can be expensive and time-consuming. ARK7 enables investors to buy fractional shares of rental properties, offering access to potential rental income and real estate exposure without property management responsibilities.<\/a> By lowering the barrier to entry, the platform gives investors another way to diversify beyond traditional stocks and bonds. <\/p>\n Miso Robotics <\/p>\n Robotics and automation are becoming increasingly important tools for businesses facing labor shortages and rising operating costs. Miso Robotics develops AI-powered kitchen technology that is already being deployed in restaurant environments, with products designed to help operators improve efficiency and streamline operations.<\/a> As artificial intelligence expands beyond software and into real-world applications, the company is positioning itself at the intersection of robotics, automation and the future of food service. <\/p>\n Vinovest\u00a0 <\/p>\n Fine wine and rare whiskey have historically moved independently of the stock market, making them a compelling alternative asset. Vinovest manages authenticated, insured portfolios of investment-grade wine and whiskey starting at $5,000<\/a> \u2014 sourcing, storage, and insurance all handled for you. <\/p>\n EquityMultiple\u00a0 <\/p>\n For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000<\/a>,<\/a> with only ~5% of opportunities passing their due diligence process.\u00a0 <\/p>\n Mode Mobile <\/p>\n