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Microsoft Announces Layoffs Impacting 4,800 Jobs, Xbox Division Hit Hardest

KVIA•Monday, July 6, 2026 at 9:29 PM•CNN Newsource

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AI Summary

Microsoft is set to reduce its workforce by approximately 4,800 positions, which is about 2.1% of its global staff, with the Xbox division being significantly affected. The layoffs come as the company faces pressure to adapt to rapid changes in technology and artificial intelligence. Notably, 1,600 positions will be eliminated immediately from Xbox, with a total of 3,200 jobs expected to be cut by the end of fiscal year 2027. This decision follows previous layoffs and reflects ongoing challenges in the gaming industry, including a decline in spending post-pandemic and rising console prices. Microsoft is also restructuring its gaming studios to enhance focus and efficiency.

Key Details: • 1,600 Xbox jobs will be cut immediately, with 3,200 total by fiscal 2027. • Console prices will increase by $100 to $150 starting August 1. • Microsoft's Xbox revenue fell by 5% in the last quarter ending March. • The company plans to invest significantly in Xbox while focusing on efficiency.

gaming artificial-intelligence layoffs microsoft xbox

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