Microsoft cut approximately 4,800 positions, or 2.1% of its global workforce, on July 6, 2026, with the Xbox division and commercial sales teams hit hardest. About 1,600 of the cuts came from Xbox, which Xbox CEO Asha Sharma called the most significant restructuring in the division’s history. Microsoft Chief People Officer Amy Coleman said the eliminated roles are not being replaced by AI, though she acknowledged AI is reshaping how work gets done, as the company continues shifting investment toward enterprise AI and its Frontier Company business unit.
