Microsoft to clip thousands of jobs in Xbox gaming division
July 6, 2026 - Xbox will bear the brunt of broader job losses at Microsoft, with approximately 3,200 positions to be eliminated through fiscal 2027.
Here are the cuts affecting Microsoft.
Microsoft is cutting approximately 4,800 jobs across the company, including a sweeping restructuring of its Xbox gaming division that will eliminate roughly one-fifth of the unit’s workforce as the software giant seeks to improve profitability amid economic turbulence over artificial intelligence (AI) that has slowed some of its gaming and consumer computer divisions.
The layoffs represent about 2.1 percent of Microsoft’s global workforce. Xbox accounts for the largest share of the reductions, with Chief Executive Officer Asha Sharma informing employees that approximately 3,200 positions will be eliminated through fiscal year 2027, including 1,600 immediate job cuts announced Monday.