Microsoft has cut 4,800 jobs across its gaming and sales divisions after an internal memo exposed an Xbox business that burned through billions while its revenue shrank.
The cuts, which landed on 6 July 2026, hit Xbox hardest, with 1,600 roles eliminated immediately and another 1,250 expected to go through fiscal year 2027, together representing roughly 20% of the division's entire workforce. The rest of the reductions fell across Microsoft's broader sales organisation. The cuts follow a blunt internal reset memo from Xbox CEO Asha Sharma, published weeks earlier, which laid out a division spending far more than it was earning back. Together, the reductions amount to one of the largest single-day workforce cuts in Xbox's 25-year history.
