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Microsoft cuts 4,800 jobs as it revamps Xbox in latest wave of mass layoffs

Thousands of gaming jobs will be shed over the coming fiscal year as Microsoft continues to invest heavily in AI

Microsoft said on Monday it was eliminating about 4,800 jobs – roughly 2% of its global workforce – in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division.

The cuts include the deepest overhaul in Xbox’s history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year, four game studios being spun off or sold, and a fifth entering a review process that could lead to closure, the company said.

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Jul 6, 2026 Technology Xbox Games

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