{"id":203561,"date":"2026-07-06T15:41:45","date_gmt":"2026-07-06T15:41:45","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2026\/07\/06\/microsoft-cuts-4800-jobs-and-shrinks-xbox-in-significant-restructure\/"},"modified":"2026-07-06T15:41:45","modified_gmt":"2026-07-06T15:41:45","slug":"microsoft-cuts-4800-jobs-and-shrinks-xbox-in-significant-restructure","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2026\/07\/06\/microsoft-cuts-4800-jobs-and-shrinks-xbox-in-significant-restructure\/","title":{"rendered":"Microsoft cuts 4,800 jobs and shrinks Xbox in ‘significant restructure’"},"content":{"rendered":"
\n

Microsoft has announced it has cut 4,800 jobs – roughly 2.1% of its workforce – with Xbox to bear a large number of its latest layoffs.<\/b><\/p>\n

Amy Coleman, executive vice president at Microsoft, told employees in a memo that the tech giant needed to focus on areas that can deliver for customers amid a “fast-changing industry”.<\/p>\n

The sweeping layoffs will see more than 1,600 roles immediately axed at Xbox.<\/p>\n

Asha Sharma, who recently took over as Xbox’s chief executive, said in a note to staff it was “beginning the most significant restructure in Xbox history”.<\/p>\n

Another 1,600 jobs will be lost in the coming year, Sharma said in the note, shared on X, external<\/span>.<\/p>\n

Four Xbox game development studios – Compulsion Games, Double Fine Productions, Ninja Theory and Undead Lab – would also be spun off as part of the changes, she added.<\/p>\n

“These changes are about a bigger future for Xbox, not a smaller one,” Sharma said. <\/p>\n

“History is full of companies that mistake longevity for inevitability. We will not be one of them.”<\/p>\n

Coleman meanwhile pointed to a changing customer needs in announcing Microsoft’s company-wide cuts.<\/p>\n

“Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it,” she said.<\/p>\n

She noted that while the company would not replace the lost roles with AI, “what is\u202ftrue is that AI is changing how work gets done”.<\/p>\n<\/div>\n

\n

The announcement comes at an already difficult time in the gaming industry, with many studios still reeling from brutal layoffs in recent years.<\/p>\n

In 2024, Xbox culled more than 2,000 staff and shuttered four studios bought prior to its bumper acquisition of Call of Duty maker Activision-Blizzard.<\/p>\n

Little more than a year later, Microsoft said it would lay off as many as 9,000 workers after setting out plans to double down on its multi-billion-dollar AI spending.<\/p>\n

The spiralling costs of hardware have also prompted firms including Microsoft to hike the price of years-old consoles and similar consumer gadgets – with many blaming AI data centres for pushing up demand too quickly for supply to catch up.<\/p>\n

Sharma said on Monday that while she knew the cuts were “painful”, there was a “reset” needed across Xbox’s entire content portfolio, platform and operations.<\/p>\n

She added that as part of this, Minecraft developer Mojang and Candy Crush developer King would now report directly to her.<\/p>\n<\/div>\n

\n

Sign up for our Tech Decoded newsletter to follow the world’s top tech stories and trends. Outside the UK? Sign up here.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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