Microsoft is cutting thousands more jobs in its second major round of layoffs this year, following 6,000 job cuts in May. While the tech giant did not confirm exact numbers, the latest round will affect under 4% of its global workforce—meaning up to 9,000 positions could be eliminated.

The layoffs span multiple teams, including sales and Xbox, and are part of broader restructuring efforts. Though Microsoft hasn’t specified how many Canadian roles will be affected, the cuts appear concentrated in U.S. studios. CWA Canada, which represents some employees at Montreal-based Bethesda Game Studios, said it doesn’t expect its members to be impacted.

This move comes amid a wider trend of downsizing in the global tech and gaming sectors—even as Microsoft remains highly profitable. In Canada, the video game industry has already seen significant layoffs over the past two years, raising concerns about job stability in a growing but increasingly volatile field.

With AI rapidly transforming software development, some experts warn that even high-skilled roles may not be immune, as Microsoft continues investing heavily in AI tools that can write code. The Canadian tech workforce remains vulnerable to these shifts.

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Abby Hughes’s original article, “Microsoft says it is cutting thousands of jobs in second round of layoffs in recent months” was published in CBC News on July 2, 2025. Read the Full CBC News story.