Microsoft cuts 4,800 jobs across Xbox and Commercial divisions

Microsoft eliminated 4,800 positions on July 6—2.1% of its workforce. Xbox absorbed 1,600 cuts immediately, with 1,600 more planned through fiscal year-end, plus four studio spinoffs and a potential Arkane closure. A surprise 3,200 Commercial Business cuts hit the same day. CEO Amy Coleman stated eliminated roles won't be replaced by AI, though acknowledged automation's eventual impact. This is Microsoft's third major reduction in 30 months.