Microsoft is preparing to cut thousands of jobs across sales, consulting and its Xbox division, according to reports. The layoffs are expected to affect less than 2.5% of its global workforce. Some employees may be reassigned instead of being let go. The move comes as the company increases AI investments while focusing on cost control.

Microsoft is preparing to announce job cuts next week that will affect thousands of roles across sales, consulting and its Xbox gaming division, according to a report by Business Insider citing people familiar with the situation. The cuts are expected to impact less than 2.5 percent of the company's roughly 2,20,000-person global workforce.

Sales, consulting and Xbox in the crosshairs

The sources said that the reductions will hit sales and consulting roles in addition to jobs at the Xbox division. Some affected employees will be offered new roles immediately, one of the people said. The exact timing of the announcement could still change.

Smaller than last year's rounds