Microsoft has announced the layoff of approximately 4,800 employees, equating to 2.1% of its global workforce, with significant impacts on its Xbox division and commercial sales. Xbox will see around 1,600 job cuts, as detailed in internal memos from executives. Amy Coleman, EVP and chief people officer, highlighted that while these roles are not being replaced by AI, the evolving technology landscape does necessitate changes in how work is conducted. The layoffs coincide with Microsoft’s launch of its Frontier Company business unit, which aims to enhance enterprise AI deployments backed by a $2.5 billion investment. Asha Sharma, CEO of Xbox, described this as the most significant restructure in Xbox history, citing ongoing challenges within the industry and the need for a reset to ensure long-term success.
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Microsoft Announces Layoffs of Nearly 5,000 Employees, Impacting Xbox and Commercial Sales
TechCrunch· Rebecca Bellan· Tuesday, July 7, 2026
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