# Microsoft to cut 4,800 jobs, overhaul Xbox unit

_Monday, July 6, 2026 at 8:00 AM EDT · Products · Latest · Tier 2 — Notable_

Microsoft said on Monday it would cut 4,800 jobs, or about 2.1% of its global workforce, overhauling its Xbox gaming business and divesting up to five studios. The restructuring of its gaming division will involve 3,200 job cuts, including laying off 1,600 employees on Monday. Microsoft said the cuts equal about 2.1% of its workforce. Eliminated roles are not being replaced by AI, the company said. Gaming unit Xbox will cut 3,200 roles and divest five studios. July 6 (Reuters) - Microsoft said on Monday it would cut 4,800 jobs, or about 2.1% of its global workforce, overhauling its Xbox gaming business and divesting up to five studios as it looks to boost returns after years of heavy investment in the division. The restructuring of its gaming division will involve 3,200 job cuts, including laying off 1,600 employees on Monday.

## Sources

- [Reuters](https://www.reuters.com/business/world-at-work/microsoft-joins-ai-driven-tech-layoff-wave-with-4800-job-cuts-2026-07-06/)
- [TechCrunch](https://techcrunch.com/2026/07/06/the-running-list-major-tech-layoffs-in-2026-where-employers-cited-ai/)

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