Microsoft Layoffs: Latest Updates, Severance, WARN and Employee Guide

Active major layoffHigh confidenceLatest verified event: July 6, 2026· Reviewed September 17, 2026

Microsoft is in an active, multi-round reduction. It confirmed around 4,800 roles (about 2.1%) on 6 July 2026, mostly across its Commercial and Xbox organisations, after two large 2025 waves — and its chief people officer told employees “there will be more changes ahead.”

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Educational, employee-first summary of publicly available information — not legal, financial, tax or immigration advice, and not affiliated with or endorsed by Microsoft. Verify your specific situation with HR, official notices and qualified professionals.

Severance package (2026)

Microsoft Severance Package: reported formula and calculator

The level-based weeks, 60-day minimum, 39-week cap, stock vesting and health coverage — plus a free estimator that runs in your browser.

Quick answer

Latest verified development: On 6 July 2026 Microsoft said it was eliminating “around 4,800 roles, about 2.1% of our global workforce”, and that the changes “mostly fall within our Commercial and XBOX organizations.” Roughly 1,600 of those roles were in Xbox. Separately, reporting indicates further gaming cuts through the fiscal year will bring Xbox reductions to about 3,200 in total — a different figure covering a longer period, not the balance of the 4,800. Two large 2025 waves preceded it: about 6,000 roles in May and about 9,000 in July.
What kind of event: Recurring companywide reductions across several years, most recently paired with a voluntary retirement programme that reduced the size of the involuntary round. Microsoft frames the current phase around reshaping its commercial sales and consulting organisation and resetting the economics of its gaming business.
What number is confirmed: Microsoft itself confirmed “around 4,800 roles, about 2.1%” on 6 July 2026 and said the changes mostly fall within Commercial and Xbox. The ~1,600 Xbox figure and the ~3,200 fiscal-year gaming total come from reporting, not from Microsoft's announcement. The 2025 waves — ~6,000 in May and ~9,000 in July — were company-confirmed at the time.
Who appears most affected: Microsoft named two organisations, Commercial and Xbox, without publishing a split beyond them. Reporting describes affected roles spanning software engineering, product management, sales strategy, data science, business program management, marketing and game design, from mid-level individual contributors to senior managers — so do not assume the roles outside Xbox were all sales. About 600 of the cuts are in Washington state.
What to verify first: Your official termination date, your severance offer and stock-vesting treatment (see the Microsoft severance package page), your health-coverage end date, and whether you were in scope for the voluntary retirement programme rather than the involuntary reduction.

Current status as of August 26, 2026

Classification: Active major layoff

Confirmed

✓6 July 2026, Microsoft's own announcement: “around 4,800 roles, about 2.1% of our global workforce”, with the changes “mostly fall[ing] within our Commercial and XBOX organizations.”
✓The same announcement: more than 30% of eligible employees took Microsoft's voluntary retirement programme, and more than 4,000 employees were redeployed into new roles over the past year, including 500 that month.
✓July 2025: ~9,000 roles (under 4%), its largest 2025 wave.
✓May 2025: ~6,000 roles (about 3% of headcount).
✓Headcount was ~228,000 as of 30 June 2025 (FY2025 10-K).

Reported / proposed (not confirmed)

•Roughly 1,600 of the 4,800 were Xbox roles (reported; Microsoft named the organisation but published no divisional split).
•Further gaming cuts are reported to bring Xbox reductions to roughly 3,200 — about 20% of the global Xbox workforce — across this fiscal year. That is a cumulative gaming figure over a longer window, and it is a coincidence that 4,800 minus 1,600 also equals 3,200; the two numbers describe different things and must not be added or substituted.
•About 600 of the cuts are in Washington state, with state headcount reported as expected to hold near 52,000; about 30% of roughly 8,750 eligible US employees took voluntary retirement, which reporting says reduced the size of the announced reduction in force.
•Reporting describes affected roles spanning engineering, product, sales strategy, data science, program management, marketing and game design — Microsoft did not publish a role-level breakdown.

Microsoft snapshot

Legal employer name	Microsoft Corporation
Common name	Microsoft
Parent company	None (independent)
Covered subsidiaries	LinkedIn, GitHub, Microsoft Gaming (Xbox / Activision Blizzard / King)
Industry	Software, cloud computing and gaming
Headquarters	Redmond, Washington, United States
Ticker	MSFT (NASDAQ)
Employee base	~228,000 worldwide (as of June 30, 2025)
Latest verified event	~4,800 roles (about 2.1%) — mostly Commercial and Xbox organisations — July 6, 2026
Historical H-1B sponsor	Yes (federal data)
Source confidence	High confidence
Guide last reviewed	September 17, 2026 by Deepak Middha

Microsoft layoff timeline

Microsoft's 2025 reductions came in repeated waves rather than one announcement, and it does not always publish a single headline number. Rounds are listed newest first; confirm whether your division and role were in scope.

~4,800 roles (about 2.1%) — mostly Commercial and Xbox organisations

July 6, 2026high

LayoffCompany-announcedAffected: ~4,800 (about 2.1%) — company-confirmed; ~1,600 in Xbox (reported) (~2.1%)

Affected divisions: Commercial (sales and consulting), Xbox / gaming
Affected roles: Software engineering, Product management, Sales strategy, Data science, Business program management, Marketing, Game design
Locations: Global (incl. Redmond, WA)

Company-stated reason: Microsoft's chief people officer, Amy Coleman, told employees the company was eliminating “around 4,800 roles, about 2.1% of our global workforce”, that the changes “mostly fall within our Commercial and XBOX organizations”, and that the eliminated positions are not being replaced by AI even as AI changes how work gets done. Reporting ties the commercial-side changes to a shift toward customer-embedded technical roles and the Xbox changes to a reset of the gaming business's margins. [11],[12],[5],[6]

What this means for you: Be careful with the two gaming numbers, because they are easy to conflate and one of them is not about this announcement. About 1,600 Xbox roles went in the 6 July action; the roughly 3,200 figure is the total gaming reduction reported across the fiscal year, including cuts still to come. Microsoft named Commercial and Xbox as where the changes “mostly” fall and published nothing finer, so if you are outside those two organisations you cannot rule yourself out on the strength of the announcement alone.

~9,000 roles — largest 2025 wave (under 4%)

July 2, 2025high

LayoffCompany-announcedAffected: ~9,000 (~4%)

Affected divisions: Sales, Microsoft Gaming (Xbox/King), Multiple teams
Affected roles: Sales, Gaming, Management layers
Locations: Global (incl. Redmond, WA)

Company-stated reason: A spokesperson said the cuts streamlined processes and reduced management layers; they spanned geographies and tenure. [1],[2]

What this means for you: This was the largest 2025 wave. Because it cut across management layers, org charts shifted — if you survived it, verify your reporting line; if affected, move quickly on severance and stock-vesting questions.

~6,000 roles (about 3%)

May 13, 2025high

LayoffCompany-announcedAffected: ~6,000 (~3%)

Affected divisions: Product & engineering, Multiple teams
Affected roles: Software engineering, Product, Management layers
Locations: Global (notable Puget Sound / Redmond, WA impact)

Company-stated reason: Reducing management layers and organizational complexity as AI/cloud investment increased. [3]

What this means for you: The May round was reported to hit product and engineering notably, including the Seattle area. If you're in WA, this is the round most likely to appear in the state's WARN database — search it.

What changed between rounds

Repeated waves, not one announcement

Unlike a single big cut, Microsoft's 2025 reductions arrived in waves (May, July, and smaller actions), and 2026 reporting suggested more. For employees this means 'we survived the last round' is not a durable signal — plan as if further efficiency actions are possible, and keep your documents and network current.

Management-layer flattening

A recurring theme was reducing management layers and 'span of control' changes rather than shuttering a business. That reshuffles reporting lines and can eliminate roles that were not underperforming — verify your new manager and org after each wave.

Gaming (post-Activision) in scope

After the Activision Blizzard/King acquisition, Microsoft Gaming (Xbox) featured in the 2025 and 2026 rounds. Two gaming numbers circulate and they are not interchangeable: about 1,600 Xbox roles went in the 6 July 2026 action, while about 3,200 is the reported total gaming reduction across the fiscal year — roughly 20% of the global Xbox workforce — including further cuts expected after that date. Treat studio and publishing reorganizations as distinct from the core cloud/AI narrative, and confirm which entity employs you.

WARN notice research

Microsoft is headquartered in Redmond, Washington, and Washington's Employment Security Department publishes an official WARN layoff-and-closure database where Microsoft filings appear. WARN coverage depends on worksite, event size, timing and state law, and remote employees are generally tied to the site they report to. Verify filings in the official state database rather than relying on aggregators.

Legal employer	State	City / worksite	Notice date	Effective	Affected	Official filing
Microsoft Corporation	Washington	Redmond — Puget Sound campuses + remote Washington workers	May 13, 2025	July 12, 2025	1985	Washington Employment Security Department (ESD)

Check the official WARN database for your worksite state:

Washington WARN California WARN

WARN Tracker What a WARN notice means WARN law by state

Historically reported Microsoft severance packages

Microsoft has never published a severance schedule, but the terms reported for its July 2026 round are unusually specific: a level-based cash formula measured in weeks of base pay per six months of service, a floor of 60 days, a cap of roughly 39 weeks, continued stock vesting for level 67 and below, and six months of paid health coverage before COBRA. The detail below is reported, not company policy — but it is specific enough to check your own offer against line by line. A free estimator for your own numbers sits on the Microsoft severance calculator.

Full reported terms and a calculator: Microsoft Severance Package: reported formula and calculator.

Employees affected by the reported July 2026 round (level 67 and below unless noted) · 2025

Reported / undisclosedmedium

United States

Reporting described a cash severance formula that scales with both level and service: employees at level 64 and below accrued a reported one week of base pay per six months of service, while levels 65 to 67 accrued a reported two weeks per six months. Total severance was reported to be subject to a floor of 60 days of base pay and a ceiling of approximately 39 weeks — about nine months. On top of cash, level 67 and below were reported to receive continued stock vesting for six or twelve months depending on tenure, and six months of paid health coverage before optional COBRA. Executive terms at level 68 and above were not reported and are negotiated individually. [1],[10]

Cash formula — level 64 and below	Reported 1 week of base pay per 6 months of service
Cash formula — levels 65–67	Reported 2 weeks of base pay per 6 months of service
Minimum	Reported floor of 60 days of base pay (~8.6 weeks) even for short tenure
Maximum	Reported cap of approximately 39 weeks (~9 months) however long your service
Level 68+ / executive	Not reported. Executive separations are negotiated individually and typically involve distinct equity and deferred-compensation terms
Continued stock vesting	Reported 6 or 12 months of continued vesting for level 67 and below, depending on tenure — value this separately from the cash, it is often the larger number
Health coverage	Reported 6 months of paid health coverage, then optional COBRA — confirm your exact coverage end date, it starts your COBRA and Marketplace clocks
Release	A separation agreement and release is typically required. If you are 40 or over, read the consideration period stated in the agreement itself — generally at least 21 days for an individual waiver, or at least 45 days where the waiver is requested in connection with a group termination programme, plus 7 days to revoke in either case
Where the numbers come from	Reported by Business Insider in July 2026. Microsoft has not published a schedule; treat every figure here as a benchmark for questions, not an entitlement

Note: Every figure in this table is reported rather than published by Microsoft, and the reported formula covers level 67 and below only. Terms vary by role, level, tenure, country, legal employer and the agreement you are actually handed. Use these numbers to check whether your offer looks consistent and to ask specific questions — not to assume what you are owed. Confirm your own figures with HR in writing.

What signing asks you to give up

Severance is almost never a gift. In the United States it is nearly always consideration — payment in exchange for a release of claims, which is the operative half of the document and the half that is easy to skim past. Before you sign Microsoft's agreement, know what the release actually covers and what it cannot.

Typically waived	Claims arising from your employment and its end — discrimination, wrongful termination, harassment and retaliation — usually including claims you do not yet know about.
Wage claims — treated differently	Do not assume unpaid wages are released just because the agreement is broadly worded. Whether a statutory wage claim can be released at all varies by the statute and by your state. Federal minimum-wage and overtime rights under the FLSA are the clearest example: the Supreme Court held that allowing employees to waive statutory wages “would nullify the purposes of the Act,” and extended the same reasoning to liquidated damages (Brooklyn Savings Bank v. O'Neil, 324 U.S. 697 (1945)). Congress provided a specific route instead — payment supervised by the Secretary of Labor, which on payment in full does waive the private right of action (29 U.S.C. § 216(c)) — and courts commonly require court approval or a bona fide dispute for anything else, with the rules differing between circuits. Several states go further: California, for example, voids a release of a wage claim taken before the wages are paid, and bars its wage-payment rules from being “contravened or set aside by a private agreement” (Cal. Lab. Code §§ 206.5, 219). If you are owed final pay, PTO, commissions or overtime, treat that as a separate question from the release and get advice on your own state's rule.
Often added alongside	Non-disparagement, confidentiality about the agreement, cooperation clauses, return-of-property terms, and sometimes non-solicit or non-compete restrictions. These are obligations you take on, not claims you release — read them separately.
Cannot be waived	Your right to file a charge with the EEOC, or to take part in an EEOC investigation. Federal regulation is explicit: no waiver agreement may include a provision prohibiting anyone from filing a charge — including a challenge to the validity of the waiver itself— or from participating in an EEOC proceeding, and none may impose a penalty or condition that adversely affects that right (29 C.F.R. § 1625.22(i)). Vested retirement benefits, unemployment eligibility and, in most states, workers' compensation claims also sit outside a release.
If you are 40 or older	“An individual may not waive any right or claim under this chapter unless the waiver is knowing and voluntary” — and the ADEA sets out what that requires at a minimum (29 U.S.C. § 626(f)(1)). Which consideration period applies depends on how the offer is made: At least 21 days to consider the agreement — the general rule for a waiver offered to you individually (§ 626(f)(1)(F)(i)). At least 45 days instead, where the waiver is requested in connection with an exit incentive or other employment termination program offered to a group or class of employees (§ 626(f)(1)(F)(ii)). Whether your separation is part of such a program is a factual question about how the employer structured and offered the waiver — a company announcing a layoff round does not by itself establish that every separation agreement in it is part of a group program. At least 7 days after you sign in which you may revoke, and the agreement cannot become effective or enforceable until that period expires (§ 626(f)(1)(G)). This one cannot be shortened. Where a waiver is requested in connection with such a group program, the employer must also inform you in writing, at the start of the consideration period, of the class, unit or group covered, the eligibility factors and any time limits, plus the job titles and ages of everyone eligible or selected and the ages of everyone in the same job classification or organizational unit who was not selected (§ 626(f)(1)(H)). Do not assume which period applies to you. Read the agreement itself — it normally states the consideration period on its face — and check whether you were given decisional-unit information alongside it. If the stated window is shorter than you expected, or group disclosures are absent where the waiver appears to be tied to a group program, that is worth raising with an employment lawyer before you sign rather than assuming either 21 or 45 days is your entitlement.

If those requirements are not met, the age-claim waiver does not hold. The Supreme Court put it plainly in Oubre v. Entergy Operations, Inc., 522 U.S. 422 (1998): a release that does not comply with the OWBPA “is unenforceable against her insofar as it purports to waive or release her ADEA claim… the release cannot bar her ADEA suit, irrespective of the validity of the contract as to other claims” — and she did not have to give the money back first. Note the second half of that sentence: the defect invalidates the ADEA waiver, not automatically every other provision of the agreement, which may still bind you. It is also the employer's burden to prove a waiver was knowing and voluntary (§ 626(f)(3)), which is why a shortened window or a missing group disclosure is worth raising before you sign rather than after. Severance agreements over 40 (OWBPA) covers this in full, and severance agreement red flags covers the clauses worth pushing back on. This is general information, not legal advice about your situation.

Past packages provide historical context only. Your terms may differ by layoff round, role, level, tenure, location, legal employer and separation agreement. If you are 40 or older, review the severance agreement over 40 (OWBPA) guide before signing.

Estimate your severance

Free severance pay calculator — not a promise of Microsoft terms.

Calculate your runway

Combine severance, notice/WARN pay, final pay, PTO, unemployment and savings against expenses.

Microsoft-specific compensation issues

Stock awards and vesting

Microsoft compensation includes on-hire and annual stock awards that vest over multiple years, and reported layoff terms have included continued vesting for a period. How unvested stock not covered by that continuation is treated is controlled by the applicable equity plan, your award agreement and your separation terms, so map your vest dates against your termination date and any reported vesting-continuation window before you value the package. [1]

Annual bonus timing

Microsoft's fiscal year ends June 30 and annual rewards are typically communicated afterward. A separation date near fiscal year-end can affect bonus eligibility and timing — ask HR whether you remain eligible for any earned-but-unpaid bonus and how it will be calculated. [4]

Level-driven severance

Because Microsoft's reported severance formula scales with level (for example, different weeks-per-six-months at Level 64 and below versus 65–67, with executive Level 68+ negotiated separately), your level materially changes your estimate. Confirm your level and use the Microsoft Severance Package estimator. [1]

Health insurance, benefits and final pay

•Reported terms included several months of paid health coverage before COBRA — confirm your exact end date and whether the paid months apply to you.
•Compare COBRA against ACA Marketplace once your paid coverage ends; losing job-based coverage generally creates a Marketplace Special Enrollment Period, available for 60 days before and 60 days after the loss of coverage.
•Check stock-award vesting continuation, HSA/FSA balances, and dependent-coverage dates.
•If you're a LinkedIn, GitHub or Gaming employee, confirm which entity's benefits and severance apply to you.

Final pay, unused PTO, bonus and commission treatment depend on your work state, company policy, legal employer, separation agreement and pay classification — there is no single nationwide rule (for example, some states treat accrued PTO as earned wages, others leave it to policy). Verify with these tools:

Final Paycheck Calculator COBRA vs Marketplace Unemployment hub Severance & tax

H-1B and employment-visa considerations

Historical sponsorship: Yes — Microsoft Corporation

Federal H-1B petition and labor-condition-application data shows Microsoft Corporation among the largest U.S. H-1B sponsors for years. That does not guarantee sponsorship for every role, subsidiary or location going forward. If you're on an H-1B and were affected, the regulation provides an eligible H-1B worker a discretionary period of up to 60 consecutive days following cessation of the employment on which the classification was based, or until the authorized validity period ends, whichever is shorter, and DHS may shorten or eliminate it. A payroll, severance or employer-labelled termination date does not automatically resolve when that cessation occurred, so confirm the facts promptly with qualified immigration counsel. Whether your pay comes as salary continuation or a lump sum is one of the facts that can matter here. [9]

•For an eligible H-1B worker, the regulation provides a discretionary period of up to 60 consecutive days following cessation of the employment on which the classification was based, or until the authorized validity period ends, whichever is shorter (8 C.F.R. § 214.1(l)(2)). It is available once during each authorized validity period, and DHS may shorten or eliminate it.
•A payroll, severance or employer-labelled termination date does not automatically resolve when that cessation occurred. Confirm the facts promptly with qualified immigration counsel rather than counting days from the date on your letter.
•The period may allow a transfer, a change of status or departure, but it is not work authorization in itself — unless otherwise authorized, you may not work during it.
•Ask about internal transfer and subsidiary transfer options, employment-verification letters, and any I-140/green-card process impact.

H-1B layoff guide 60-day countdown Questions for an immigration attorney

This is general information, not case-specific legal advice. Consult a qualified immigration attorney about your situation.

Alumni and former-employee networks

Microsoft has one of the larger corporate alumni footprints, and LinkedIn — itself a Microsoft subsidiary — is where much of that network lives. Use the shared alumni directory to find former-employee groups and referral threads. If you're a LinkedIn employee, note that Microsoft is the parent company when researching entity-specific terms.

Microsoft alumni network

Microsoft alumni network and referral threads.

Alumni network · LinkedIn alumni search · opens a public LinkedIn people search · link checked 2026-08-26

Open

Communities beyond Microsoft

Layoffs.fyi
Tech layoff tracker with a community list of laid-off talent open to work.
Visit
VetsinTech
Nonprofit connecting military veterans to tech training, employment and a national network.
Visit
Disability:IN
Business network for disability inclusion — employer directory and a talent programme.
Visit

All alumni networks and ERGs for Microsoft

Questions to ask Microsoft HR

1. Which legal entity employs me — Microsoft Corporation, LinkedIn, GitHub, or a Gaming entity — and which round am I part of?
Why it matters: Terms and benefits can differ by entity.
2. What is my official termination date, and is my last working day different from my payroll-end date?
Why it matters: Drives benefits, vesting and any visa grace period.
3. What is my severance under the level-based formula, and what is my level of record?
4. How many months of stock vesting continue, and which specific vests are covered?
5. How many months of paid health coverage do I get before COBRA, and when exactly does coverage end?
6. Am I eligible for any earned-but-unpaid annual bonus given my separation date relative to fiscal year-end (June 30)?
7. Is the payment a lump sum or salary continuation, and how does that affect my termination date?
8. How long do I have to review the separation agreement, and (if 40+) what is my revocation period?
9. Does the release cover subsidiaries and affiliates (LinkedIn, GitHub, Gaming)?
10. If I'm on a work visa, who provides employment-verification and immigration letters, and by when?
11. How will Microsoft code my separation for unemployment purposes?

Get the important answers in writing where you can.

Employee action plan

First 24 hours

→Do firstSave permitted personal documents (offer, stock-award grants/vesting, pay stubs, benefits summaries) before access ends — no confidential Microsoft materials.
→Do firstRecord your official termination date and whether pay is lump sum or salary continuation.
→Do firstIf on an H-1B or other visa, start reviewing grace-period options today.
→Do not sign the separation agreement immediately — note your review (and revocation, if 40+) window.

First 7 days

→Use the Microsoft Severance Package estimator with your level and tenure to sanity-check your offer.
→Map stock vests against your termination date and any reported vesting-continuation window.
→Confirm your health-coverage end date and compare COBRA vs. Marketplace.
→Search Washington's official WARN database for your worksite, and reconnect with Microsoft/LinkedIn alumni for referrals.

First 30 days

→File for unemployment in your work state; confirm how severance timing affects benefits.
→Decide health coverage before deadlines; compare your 401(k) options.
→Do firstIf on a visa, finalize transfer/change-of-status with counsel well inside your grace period.
→Build a written runway plan using the severance and runway calculators.

Related LayoffNext tools

Build My Layoff Plan Severance Pay Calculator Layoff Runway Calculator Final Paycheck & PTO Payout Calculator COBRA vs Marketplace Unemployment hub WARN Tracker H-1B 60-Day Countdown Alumni & ERG Directory Job Search After Layoff

LinkedIn layoff guide Amazon layoff guide Google layoff guide Oracle layoff guide Intel layoff guide

Microsoft layoffs — frequently asked questions

Is Microsoft laying off employees in 2026?+

Yes. On 6 July 2026 Microsoft said it was eliminating “around 4,800 roles, about 2.1% of our global workforce”, and that the changes “mostly fall within our Commercial and XBOX organizations.” Roughly 1,600 of those roles were in Xbox, according to reporting; Microsoft did not publish a split, and did not say the remaining roles were all sales. A separate, larger figure circulates for gaming — about 3,200 reductions, roughly 20% of the global Xbox workforce, across the whole fiscal year including cuts still to come. That is a different measure over a different period, not the non-Xbox remainder of the 4,800. Two large 2025 waves preceded this round: about 6,000 roles in May 2025 and about 9,000 in July 2025. [11],[12]

How many employees did Microsoft lay off in 2025?+

Microsoft confirmed about 6,000 roles in May 2025 (around 3% of headcount) and about 9,000 in July 2025 (under 4%), its largest wave of the year. There were also smaller actions. Its headcount was about 228,000 as of June 30, 2025. [3],[1],[4]

What severance does Microsoft offer in a layoff?+

Reporting described a level-based cash formula with a reported minimum floor and an overall cap, plus continued stock vesting for a period and several months of paid health coverage before COBRA. The full reported formula, examples and a free estimator are on the LayoffNext Microsoft Severance Package page — use it and confirm your own numbers with HR. [1]

What happens to my Microsoft stock awards if I'm laid off?+

Reported layoff terms have included continued vesting for a period depending on tenure; the treatment of stock not covered by that continuation is controlled by the applicable equity plan, your award agreement and your separation terms. That equity is valued separately from cash severance, so map your specific vest dates against your termination date and the reported vesting-continuation window. [1]

Did Microsoft file WARN notices?+

Yes. Microsoft filed a WARN notice with Washington's Employment Security Department for its 2025 layoffs covering 1,985 workers in Washington (1,510 in offices and 475 remote), effective July 12, 2025 — its largest home-state round since 2023. WARN coverage depends on worksite, size, timing and state law, so search the official state database for your own worksite and use the LayoffNext WARN Tracker as a starting point rather than relying on aggregator counts. [7],[8]

Does Microsoft sponsor H-1B workers?+

Yes, historically. Federal H-1B and labor-condition-application data has shown Microsoft Corporation among the largest U.S. sponsors for years. That does not guarantee sponsorship for every role or subsidiary going forward. If you're on an H-1B and were affected, act quickly on grace-period options and confirm your dates with immigration counsel. [9]

I work at LinkedIn — is that a Microsoft layoff?+

LinkedIn is a Microsoft subsidiary, so Microsoft-wide efficiency drives can affect it, but LinkedIn also runs its own reductions and its terms can differ. Confirm which legal entity employs you and which round applies. A dedicated LinkedIn guide is planned; in the meantime this Microsoft guide covers the parent-company context.

Can laid-off Microsoft employees collect unemployment?+

Layoffs are generally a qualifying reason for unemployment, but eligibility, amounts and how severance affects timing depend on your work state. File in the state where you worked as soon as you're eligible, and confirm how salary continuation versus a lump sum affects your benefit start date.

What should Microsoft employees ask HR first?+

Confirm your legal employer and round, your official termination date, your level-based severance, how many months of stock vesting and paid health coverage you get, whether pay is lump sum or salary continuation, bonus eligibility relative to the June 30 fiscal year-end, and — if on a visa — who provides immigration documentation. Get the key answers in writing. [1]

Sources and methodology

Every material figure on this page references a numbered source below. We prioritize company and SEC filings, official government and WARN data, and federal immigration data, followed by reputable reporting; anonymous posts are not used as a sole source for any material claim. Confidence labels describe source strength, not certainty for your situation: supported by company, sec, government, or multiple strong sources. (High); credible reporting exists but important details remain incomplete. (Medium); public evidence is incomplete or primarily secondary. (Limited).

[1] Microsoft to Cut 9,000 Workers in Second Wave of Major Layoffs Reputable reporting
Bloomberg · July 2, 2025 · Accessed July 24, 2026 · secondary
Supports: jul-2025-9000, under-4-percent, sales-xbox-management
[2] Microsoft laying off about 9,000 employees in latest round of cuts Reputable reporting
CNBC · July 2, 2025 · Accessed July 24, 2026 · secondary
Supports: jul-2025-9000, streamline-management-layers
[3] Microsoft cuts about 6,000 jobs; Seattle-area impact Reputable reporting
Axios · May 14, 2025 · Accessed July 24, 2026 · secondary
Supports: may-2025-6000, about-3-percent
[4] Microsoft Corporation Form 10-K (fiscal year ended June 30, 2025) — approximately 228,000 employees SEC filing
U.S. Securities and Exchange Commission (SEC EDGAR) · July 30, 2025 · Accessed July 24, 2026 · primary
Supports: employee-base
[5] Microsoft cuts 2.1% of employees (~4,800 jobs) as Xbox unit plans to spin off studios Reputable reporting
CNBC · July 6, 2026 · Accessed July 24, 2026 · secondary
Supports: jul-2026-4800, 2_1-percent, xbox-1600-commercial-sales
[6] Microsoft lays off nearly 5,000 employees across Xbox, commercial sales Reputable reporting
TechCrunch · July 6, 2026 · Accessed July 24, 2026 · secondary
Supports: jul-2026-4800, xbox-1600-commercial-sales
[7] Microsoft will cut nearly 2,000 jobs in Washington state (1,985 workers; 1,510 office + 475 remote), effective July 12 Reputable reporting
GeekWire · May 16, 2025 · Accessed July 24, 2026 · secondary
Supports: warn-wa-1985
[8] WARN layoff and closure database (Microsoft filings appear here) Government / WARN
Washington Employment Security Department · Accessed July 24, 2026 · primary
Supports: warn-verification, warn-wa-1985
[9] USCIS H-1B Employer Data Hub — Microsoft Corporation Federal immigration data
U.S. Citizenship and Immigration Services · Accessed July 24, 2026 · primary
Supports: h1b-historical-sponsorship
[10] Reported Microsoft severance terms for the July 2026 layoffs — level-based formula, 60-day minimum, 39-week cap, continued stock vesting and paid health coverage Reputable reporting
Business Insider · July 8, 2026 · Accessed August 26, 2026 · secondary
Supports: Reported level-based cash severance formula (weeks of base pay per six months of service), Reported 60-day minimum floor on total severance, Reported cap of approximately 39 weeks (~9 months), Reported continued stock vesting of 6 or 12 months for level 67 and below, Reported 6 months of paid health coverage before optional COBRA
[11] The latest in our company transformation — Amy Coleman, EVP and Chief People Officer, on around 4,800 roles (about 2.1% of the global workforce) Company / official
Microsoft (The Official Microsoft Blog) · July 6, 2026 · Accessed August 26, 2026 · primary
Supports: Microsoft's own figure: “around 4,800 roles, about 2.1% of our global workforce”, Microsoft's own scoping: the changes “mostly fall within our Commercial and XBOX organizations”, More than 30% of eligible employees took the voluntary retirement programme, More than 4,000 employees redeployed into new roles over the past year, including 500 that month
[12] Microsoft cuts 4,800 jobs, about 2% globally, revamps salesforce and launches massive Xbox overhaul Reputable reporting
GeekWire · July 6, 2026 · Accessed August 26, 2026 · secondary
Supports: About 1,600 of the 4,800 announced cuts were in the Xbox division, Further Xbox cuts expected to bring gaming-division reductions to roughly 3,200, about 20% of the global Xbox workforce, this fiscal year, About 600 of the cuts are in Washington state; state headcount expected to stay near 52,000, Roles span software engineering, product management, sales strategy, data science, business program management, marketing and game design, About 30% of roughly 8,750 eligible US employees accepted the voluntary retirement programme, reducing the size of the announced reduction in force

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This guide is an educational summary of publicly available information about Microsoft and is not legal, financial, tax, immigration, benefits or employment advice. It is not affiliated with, authorized by, or endorsed by Microsoft. Severance, benefits, equity, WARN coverage and legal rights vary by role, level, location, tenure, legal employer, agreement and applicable law, and companies change terms between rounds. Verify your specifics with HR, official notices, state agencies and qualified professionals. See our full disclaimer.

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Deepak Middha is the founder of LayoffNext and a Chartered Accountant (ICAI, India). A U.S. immigrant with nearly 20 years of experience — and 17 years in hedge fund and private equity administration, including as Vice President of Fund Accounting at NAV Fund Administration Group and Associate Director of Private Equity and Real Estate at SS&C Technologies — he builds free, plain-language layoff tools and guides for employees, H-1B workers, and immigrant families.

Updated September 17, 2026

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