Department affected: Commercial and Xbox organizations (notably Xbox/gaming and commercial sales).
Based on news reporting.
Microsoft Corporation initiated a major workforce reduction that eliminated around 4,800 roles (about 2.1% of its global workforce) as it began its new financial year. The cuts hit commercial sales teams broadly and disproportionately affected Xbox, where roughly 1,600 employees were let go immediately and more than 30% of the day's layoffs were in gaming; Microsoft plans to eliminate about 20% of Xbox jobs by July 2027. The company said decisions were driven by changing technology needs and an increased focus on AI, while noting it has redeployed more than 4,000 employees over the past year and offered a voluntary retirement buyout program for eligible U.S. staff. The article also highlights scrutiny over continued H‑1B visa filings amid domestic reductions and frames the restructuring as part of a longer-term shift toward AI and higher-margin projects.
Microsoft Corporation cut 4,800 jobs affecting its Commercial and Xbox organizations (notably Xbox/gaming and commercial sales) team as of July 1, 2025.
That is roughly 2.1% of the 228,000 people Microsoft Corporation employs.
LayoffTalk has tracked 51 layoff events at Microsoft Corporation since January 2023, affecting a combined 124,423 employees.
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