Microsoft is set to embark on a fresh round of layoffs, which will involve approximately 5,700 employees, constituting 2.5% of its worldwide workforce. This upcoming wave of layoffs will span across various departments, encompassing sales, consulting, and the Xbox gaming sector. Notably, the Xbox business stands out as a primary area targeted for restructuring, with Microsoft currently weighing options to either split or reorganize this division. This move represents yet another significant organizational restructuring effort by Microsoft, coming on the heels of the 15,000-employee layoff in July 2025. The company's objective is to ramp up investments in AI, the Azure cloud platform, and data center infrastructure, while simultaneously curbing expenses in traditional business areas. Since the start of the year, tech giants like Meta and Amazon have also unveiled extensive layoff strategies, signaling that the global tech industry is in the midst of a continuous talent realignment process.