According to the layoffs will affect less than 4 percent of the company’s global workforce and will cut across multiple departments, levels, and geographies.

“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” a spokesperson for Microsoft was quoted as saying in an emailed statement.

Internal sources told CNBC that the company is seeking to flatten its management structure and make teams more agile.

Phil Spencer, the chief executive officer (CEO) of Microsoft Gaming, confirmed in a memo that some roles within the gaming division would also be affected.

“To position Gaming for enduring success and allow us to focus on strategic growth areas,” Spencer said.

“We will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness”.

In January, Microsoft implemented performance-based layoffs affecting of its workforce. The company went on to over 6,000 jobs in May, followed by   in June.

Combined with earlier cuts, the latest reported layoffs suggest that more than 15,000 roles may have been affected at Microsoft so far this year.

As of June 2024, Microsoft reportedly had about 228,000 employees globally.