July 6, 2026 · CNBC
Microsoft Cuts 4,800 Jobs as Xbox Absorbs Its Biggest-Ever Restructuring
Microsoft eliminated about 4,800 jobs — roughly 2.1% of its global workforce — with the Xbox gaming division bearing the brunt: 1,600 roles cut on July 6 and about 3,200 through fiscal 2027, or roughly 20% of Xbox. The company also revamped its commercial sales and consulting organizations, spun out four gaming studios, and flattened Xbox management from 14 layers toward three. The cuts came amid record AI capital spending, a ~30% stock slide, and a first-ever voluntary retirement program that about 30% of 8,750 eligible US staff accepted.
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