Microsoft readies third major layoff round affecting thousands

Microsoft is preparing to announce thousands of job cuts early next week as the technology giant moves to rein in costs, people familiar with the matter told Business Insider on Wednesday. The planned reduction — the company's third major round of layoffs in just over a year — will impact staff in sales and consulting units as well as the Xbox gaming division.

While the cuts are projected to account for less than 2.5 percent of the company's 220,000-person global workforce, they will nonetheless eliminate thousands of positions, according to the sources. Some affected employees will be offered new roles immediately, one of the sources said, though the exact timing of the announcement could shift.

Previous reductions

The planned cuts follow two significant workforce reductions at the Redmond-based technology firm within the past 14 months. Microsoft eliminated 6,000 positions last May and conducted a larger round of 9,000 layoffs — representing approximately 4 percent of its workforce — the following July.

Business Insider reported that the announcement could come as early as next week, though company officials have not publicly confirmed the timing or scale of the reductions.