Xbox Cuts Account for Over 30 Percent of Microsoft's 4,800-Job Layoff

Microsoft eliminated 1,600 Xbox positions effective July 6, 2026, with 1,250 more slated for removal over the following year—totaling 2,850 roles. The gaming division's cuts represent over 30 percent of a company-wide reduction of 4,800 jobs, or 2.1 percent of Microsoft's workforce, making this the largest layoff wave in Xbox's history. The restructuring occurs under newly appointed CEO Asha Sharma, who replaced Phil Spencer in February 2026.