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N12Economy

Microsoft Israel to Lay Off Dozens in Global Restructuring

Translated & summarized from N12 by baba

CenterNeutral tone

Hebrew · 7 newsrooms covering

Microsoft Israel will lay off dozens of employees as part of a global restructuring, with the exact number of affected staff not yet known. The company is reassessing its operations and structure to meet evolving demands, and some employees may be redeployed. This move mirrors previous large-scale layoffs, such as the 4,800 job cuts in July 2026, mainly impacting the Xbox division.

The story in 6 lines · by baba

  • Microsoft Israel will lay off dozens of employees as part of a global restructuring.
  • The exact number of employees to be laid off in Israel has not yet been specified.
  • Some affected employees may be reassigned to other positions within the company.
  • Microsoft is reviewing its operations and organizational structure to adapt to changing needs.
  • Unconfirmed reports link the Israeli layoffs to employees working on Copilot Studio.
  • This follows a major layoff of 4,800 employees in July 2026, primarily from Xbox.
Microsoft Israel to Lay Off Dozens in Global Restructuring
Editorial illustration generated by baba News, not a photograph of the event.

Microsoft Israel is set to lay off dozens of employees as part of a global restructuring effort, though the exact number of affected workers in Israel remains undisclosed. The company stated that it is reviewing its operations and organizational structure to adapt to changing needs and challenges. Some employees may be reassigned to different roles within the company.

A Microsoft spokesperson told mako, "We continue to review the company's operations and organizational structure, in order to adapt them to changing needs and challenges. This process includes changes in team structures and in some cases, difficult decisions that directly affect employees in the company. We are aware of the personal significance of these changes, and will do everything in our power to accompany the employees who will be affected by them during this period with sensitivity, respect, and support."

Details of the global layoffs have not yet been released. Unconfirmed reports suggest the cuts in Israel may impact employees working on Copilot Studio. This follows a significant layoff in July 2026, when Microsoft dismissed 4,800 employees, primarily from its Xbox gaming division, which represented about 2.1% of its global workforce. At that time, the company indicated that artificial intelligence was changing how work is done, rather than directly replacing employees.

N12Centre · Neve Ilan

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