Microsoft cuts 4,800 jobs in single day, pairing expected Xbox restructure with surprise Commercial Business layoffs

Microsoft cut 4,800 positions on July 6, 2026—2.1% of its workforce. Xbox lost 1,600 immediately, with 1,600 more planned by fiscal year-end, plus four studio spinoffs and potential Arkane closure. A separate 3,200 Commercial Business cuts, not previously signalled, hit the same day. CEO Amy Coleman stated eliminated roles won't be replaced by AI, though noted automation's future potential. This marks Microsoft's third major reduction in 30 months.