Microsoft Cutting 4,800 Jobs In Xbox Reset

Microsoft (NASDAQ: MSFT) is eliminating 4,800 jobs, or roughly 2.1% of its global workforce, in the software giant's latest round of cost cuts. The Xbox video game unit is bearing the brunt: about one-fifth of Xbox employees, or 3,200 roles, are being cut through fiscal year 2027, with 1,600 of those exiting immediately on Monday, July 6, 2026. Xbox CEO Asha Sharma detailed the changes in an internal memo, telling staff that "we will return to growth in 2027" while acknowledging that "a year-long restructuring creates additional challenges." As part of the reset, four Microsoft-owned gaming studios are being spun out: Compulsion Games and Double Fine Productions both acquired in the 2010s are becoming independent again, while Ninja Theory and Undead Labs, which joined Microsoft in 2018, "have entered terms to join new ownership." France-based Arkane Studios, which arrived through the $8.1 billion ZeniMax Media acquisition in 2021, is in consultation with its works council on strategic options. Chief People Officer Amy Coleman, a 27-year Microsoft veteran, said "the way technology is built, deployed, and used is transforming faster than at any point in my time here," and added that AI is "not replacing laid-off workers" but is "changing how work gets done." Microsoft's earlier April 2026 voluntary retirement program has already been accepted by more than one-third of eligible U.S. senior directors and below. Microsoft stock is down 19% year-to-date as of Friday's close, the worst performer among megacap tech, as investors question CEO Satya Nadella's AI strategy and worry that generative AI models could displace enterprise software. Last year, Microsoft cut 9,000 jobs in a single round. Video contains content from Youtube: @events_msft #Microsoft #Xbox #Layoffs 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.