Microsoft Set for New Round of Job Cuts Next Week, Spanning Xbox, Sales and Consulting
Microsoft is expected to cut thousands of jobs, with layoffs below 2.5% of its 220,000-person workforce as it reins in costs.
- Microsoft plans to announce job cuts next week affecting thousands of employees across sales, consulting, and the Xbox division, impacting less than 2.5% of its 220,000-person global workforce.
- Layoffs follow the June 30 fiscal year close, when Microsoft typically restructures operations. The company is reining in costs while spending more than $100 billion on AI and cloud infrastructure this fiscal year.
- This round is smaller than last year's cuts, partly because about one-third of eligible U.S. employees accepted voluntary retirement buyouts. Microsoft eliminated more than 15,000 roles during two 2025 layoff rounds.
- Xbox layoffs have been expected since CEO Asha Sharma sent a memo calling for a "reset" of the business. The gaming unit faces a deepening components crisis and recently raised console prices worldwide.
- U.S. tech companies announced 123,653 cuts so far in 2026, a 66% increase from last year, according to outplacement firm Challenger, Gray & Christmas. AI-related downsizing reached 87,714 cuts for the year.
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61 Articles
Every Major Game Potentially at Risk from Upcoming Xbox Layoffs & Reset Plan
Last month, Xbox revealed plans for a major overhaul of its gaming division. Dubbed the Xbox Reset by CEO Asha Sharma, the company is making major changes to its investments to try to course-correct from poor financial performance. Reportedly, this will include layoffs and full studio closures starting as early as the first week of July, following the end of the current fiscal quarter. In other words, any day now. Since the reset was announced, …
Microsoft to Cut Thousands Across Sales, Consulting and Xbox as Fiscal Year Ends — Are You At Risk?
Microsoft is preparing to lay off thousands of employees as early as next week, just days after its fiscal year concluded on 30 June midnight. The upcoming restructuring is expected to affect under 2.5% of the tech giant's 228,000-person global workforce. Internal sources indicate that the workforce reductions will primarily target positions within the company's sales, consulting, and Xbox divisions. For US contractors already tied to Xbox proje…
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