Microsoft shares fell more than 1% on Monday after the company said it would cut about 4,800 jobs as part of a broader restructuring that will hit its Xbox gaming business. The stock was down 1.4% in Monday trading. The fall came after a weak first half for Microsoft shares, which dropped nearly 23% in the first six months of 2026, their worst first-half performance since 2022.
The latest layoffs will affect about 2.1% of Microsoft’s global workforce. The gaming division will see the deepest cuts, with around 3,200 roles being eliminated. Of these, about 1,600 employees were laid off on Monday, according to reports.
