Microsoft has announced approximately 4,800 layoffs across the company as part of a broad restructuring aimed at improving profitability while expanding its investment in artificial intelligence.
According to the report, about 1,600 of the job cuts will affect the Xbox division immediately, with additional reductions planned during the fiscal year.
Microsoft also plans to divest Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs as part of its reorganization.
According to the report, the company will significantly reduce management layers and appoint Helen Chiang as Chief Operating Officer.
Microsoft is also increasing its focus on major gaming franchises such as Minecraft and Elder Scrolls while continuing record investments in AI infrastructure to support long-term growth.
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Microsoft to cut 4,800 jobs, overhaul Xbox unit https://t.co/epY9wAHTVR
— BNN Bloomberg (@BNNBloomberg) July 6, 2026
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