businessJul 6, 2026
Microsoft cuts 4,800 jobs as Xbox division faces major restructuring

Microsoft eliminated approximately 4,800 employees, representing 2.1% of its global workforce, with Xbox and commercial sales divisions receiving the largest impact. Within Xbox specifically, roughly 3,200 positions will be eliminated over the next year, affecting approximately 20% of that division's staff. The company is divesting four development studios and beginning separation from a fifth. Leadership attributed the reductions to shifting industry conditions and said artificial intelligence is not replacing these roles.
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