Microsoft Cuts 4,800 Jobs, Restructures Xbox With Studio Spinoffs
- Microsoft said July 6 it is eliminating about 4,800 positions (roughly 2% of its workforce), including 1,600 Xbox gaming cuts effective immediately and another 3,200 gaming roles spread through fiscal 2027, while spinning off or selling four game studios and flattening Xbox management to no more than five layers (BBC, https://www.bbc.co.uk/news/articles/c36yy27rnpeo).
- The company insisted the cuts are not AI-replacement driven, framing them as a 'significant restructure' even as Xbox's footprint shrinks (Fox Business, https://foxbusiness.com/fox-news-tech/microsoft-ai-layoffs-workforce-restructuring).
- The layoffs mark the latest round in a year of big-tech belt-tightening and put Microsoft on track for another heavy charge when it reports next quarter.