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

Recent layoffHigh confidenceLatest verified event: July 1, 2026· Reviewed July 24, 2026

Microsoft has run repeated 2025 reductions and, per 2026 reporting, may be conducting further cuts; treat 2026 specifics as reported until confirmed.

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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.

Quick answer

Latest verified development: Across 2025 Microsoft ran two large waves — about 6,000 roles in May and about 9,000 in July (its largest of the year, under 4% of headcount) — and in 2026 reporting pointed to further cuts of up to about 5,700 across Xbox, sales and consulting. The 2026 figure is reported, not company-confirmed.
What kind of event: Recurring companywide reductions focused on flattening management layers and reallocating spend toward AI and cloud, hitting many divisions rather than one.
What number is confirmed: ~6,000 (May 2025) and ~9,000 (July 2025) are company-confirmed. The ~5,700 figure for 2026 is reported by the press, not confirmed by Microsoft.
Who appears most affected: Reported to span sales, consulting, gaming (Xbox/King), and management layers across geographies and tenure — confirm whether your specific org and role were affected.
What to verify first: Your official termination date, your severance offer and stock-vesting treatment (see the Microsoft severance page), and your health-coverage end date.

Current status as of July 24, 2026

Classification: Recent layoff

Confirmed

✓May 2025: ~6,000 roles (about 3% of headcount).
✓July 2025: ~9,000 roles (under 4%), its largest 2025 wave.
✓Headcount was ~228,000 as of June 30, 2025 (FY2025 10-K).

Reported / proposed (not confirmed)

•2026: reporting pointed to further cuts of up to ~5,700 across Xbox, sales and consulting — not company-confirmed.
•Microsoft frames reductions around AI/cloud investment and fewer management layers.

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	Reported further cuts of up to ~5,700 (Xbox, sales, consulting) — July 1, 2026
Historical H-1B sponsor	Yes (federal data)
Source confidence	High confidence
Guide last reviewed	July 24, 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.

Reported further cuts of up to ~5,700 (Xbox, sales, consulting)

July 1, 2026limited

LayoffReliably reportedAffected: up to ~5,700 (reported) (~2.5%)

Affected divisions: Microsoft Gaming (Xbox), Sales, Consulting
Affected roles: Sales, Consulting, Gaming
Locations: Multiple (reported)

Company-stated reason: Reporting tied the cuts to continued AI investment and cost discipline; Microsoft had not published a single confirmed number at review time. [5]

What this means for you: Treat the 2026 scope as reported, not confirmed. If your team is affected, verify your own facts (termination date, severance) directly and check Washington's official WARN database for filings.

~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 2025 and reported 2026 cuts. Gaming employees should treat studio/publishing reorganizations as distinct from the core cloud/AI narrative and confirm which entity employs them.

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.

No matching official filing was located during the latest review. This does not establish that WARN did not apply or that no notice exists. WARN coverage depends on the employer, worksite, event size, timing, exceptions and state law. Verify in the official database for your worksite's state — not the company headquarters state.

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's reported layoff severance — the level-based formula, the reported 60-day minimum and ~39-week cap, continued stock vesting and paid health months — is covered in depth, with a free estimator, on the dedicated Microsoft Severance Package page. This guide summarizes it and links there rather than duplicating the formula.

Microsoft Severance Package calculator & reported formula

The level-based formula, minimum and cap, stock vesting and a free estimator — on the dedicated page.

U.S. employees (reported layoff terms) · 2025

Reported / undisclosedmedium

United States

Reporting on Microsoft's layoff severance described a level-based cash formula with a reported minimum floor and an overall week cap, plus continued stock vesting for a period and several months of paid health coverage followed by optional COBRA. The full formula, examples and an estimator live on the LayoffNext Microsoft Severance Package page — see it for detail rather than treating the summary here as your offer. [1]

Cash severance	Reported level-based formula with a minimum floor and an overall cap (see the Microsoft Severance Package page)
Stock vesting	Reported continued vesting for a period depending on tenure — valued separately from cash
Health coverage	Reported paid health months, then optional COBRA — confirm your coverage end date
Release	A separation agreement / release is typically required; review windows apply (OWBPA if 40+)

Caveat: Past packages provide historical context only. These are reported terms, not a guarantee, and vary by role, level, tenure, location and your separation agreement. For the detailed formula and an estimator, use the Microsoft Severance Package page and confirm your own numbers with HR.

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. Unvested stock not covered by that continuation is generally forfeited at separation, 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 coverage generally opens a Special Enrollment Period.
•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, your official termination date starts a time-sensitive clock (commonly described as up to a 60-day grace period) — confirm your exact date (salary continuation vs. lump sum can matter) and options with immigration counsel quickly. [7]

•Your official termination date — not the end of severance pay — generally starts the clock. Confirm last-working-day vs. payroll-end.
•A grace period (commonly described as up to 60 days) may allow transfer, change of status, or departure — confirm your specifics with counsel.
•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.

Type: Alumni network, LinkedIn group · verified via public LinkedIn people search

Open

Full Alumni & ERG Network directory

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

→Save permitted personal documents (offer, stock-award grants/vesting, pay stubs, benefits summaries) before access ends — no confidential Microsoft materials.urgent
→Record your official termination date and whether pay is lump sum or salary continuation.urgent
→If on an H-1B or other visa, start reviewing grace-period options today.urgent
→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; plan your 401(k) rollover.
→If on a visa, finalize transfer/change-of-status with counsel well inside your grace period.urgent
→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 Calculator COBRA vs Marketplace Unemployment hub WARN Tracker H-1B 60-Day Countdown Alumni & ERG Directory Job Search After Layoff

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Microsoft layoffs — frequently asked questions

Is Microsoft laying off employees in 2026?+

Reporting in 2026 pointed to further Microsoft cuts of up to about 5,700 roles across Xbox, sales and consulting, but Microsoft had not published a single confirmed number at our review date, so treat 2026 specifics as reported rather than confirmed. What is confirmed is that Microsoft cut about 6,000 roles in May 2025 and about 9,000 in July 2025. [5],[1]

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; stock not covered by that continuation is generally forfeited at separation. 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?+

Microsoft is headquartered in Redmond, Washington, and Washington's Employment Security Department publishes an official WARN database where Microsoft filings appear. WARN coverage depends on worksite, size, timing and state law. Search the official state database for your worksite and use the LayoffNext WARN Tracker as a starting point rather than relying on aggregator counts. [6]

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. [7]

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 eyes another wave of layoffs that could hit up to 5,700 workers Reputable reporting
Fox Business · July 1, 2026 · Accessed July 24, 2026 · secondary
Supports: 2026-reported-cuts, xbox-sales-consulting
[6] WARN layoff and closure database (Microsoft filings appear here) Government / WARN
Washington Employment Security Department · Accessed July 24, 2026 · primary
Supports: warn-verification
[7] 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

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Methodology & standards

How we research · Editorial standards

Important disclaimer

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.

Deepak MiddhaFounder of LayoffNext

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 July 24, 2026

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