Microsoft intends to lay off dozens of employees in Israel

Tel Aviv - Ofoq News - Microsoft intends to lay off dozens of employees at its development center in Israel, as part of a global downsizing plan, while the exact number of employees who will be included in the decision is not yet known, with some workers being redistributed to other jobs within the company.

A Microsoft spokesman told the Hebrew website "Mako" that the company continues to review its activities and organizational structure, with the aim of adapting them to changing needs and challenges.

The spokesman added: “We continue to review the company’s activities and organizational structure, with the aim of adapting them to changing needs and challenges. This process includes making changes to the structure of teams, and in some cases making difficult decisions that directly affect employees in the company.”

He continued: "We recognize the personal impact of these changes, and we will do everything in our power to accompany the employees affected by them during this period, with sensitivity, respect and support."

Details of the current layoff plan have not yet been published at the global level either, while unconfirmed reports indicated that the reduction in Israel may include employees working in the “Copilot Studio” unit.

In July 2026, Microsoft laid off about 4,800 employees, most of them in the Xbox gaming sector, in a move that constituted about 2.1% of the company’s total employees, and included a reduction of about 20% of workers in the gaming sector.

The company said at the time that artificial intelligence does not replace laid-off employees, but it changes the way work is done.