Microsoft eliminates 4,800 jobs in one day

Microsoft cut 4,800 jobs on July 6—affecting 2.1% of employees. The gaming division Xbox lost half immediately; the other half will go by year-end, plus four game studios will split off and one may close entirely. Separately, 3,200 Commercial Business jobs disappeared the same day. The CEO said these positions won't be filled by AI, though she acknowledged automation's future role. This is Microsoft's third major layoff in two and a half years.