Microsoft Cuts 4,800 Jobs as Xbox Unit Undergoes Major Restructuring

Microsoft is eliminating 4,800 positions, representing approximately 2.1% of its global workforce, as the software giant navigates a broader shift toward artificial intelligence (AI) and seeks to stabilize underperforming hardware and gaming segments, CNBC reported Monday (July 6). The restructuring hits the company’s Xbox division particularly hard. According to an internal memo from Xbox CEO Asha Sharma , the unit will shed 3,200 roles through fiscal year 2027.