Unconfirmed and no official post yet, but Microsoft has notified staff via internal email that they are eliminating 4800 jobs, the majority of the cuts will be concentrated in their Xbox and gaming divisions.
6:52 AM · Jul 6, 2026 · 37.4K Views
Microsoft plans to lay off 4,800 employees in broader company pivot to refocus its investments
Story Overview
Microsoft is cutting around 4,800 roles, or 2.1 percent of its global workforce, to align people and spending with shifting business priorities in a fast-changing industry, with the reductions centered on the Commercial Business and Xbox organizations.
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FYI
Redeployment and voluntary exits run in parallel
The company has already moved more than 4,000 employees into new roles over the past year, including 500 last month, while more than 30 percent of eligible staff took part in a recent voluntary retirement program.
Open Question
Gaming studios face management changes without further detail
Four Xbox studios are moving under new management while keeping their existing IP and projects, though no breakdown of exact headcount by unit or specific competitive effects has been released.
Sentiment
Many users called Microsoft's large-scale Xbox and gaming job cuts brutal and horrible, expressing sadness for affected employees along with disappointment over studio closures and future game output.
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11 comments with sentiment.
Cluster Engagement
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Zephyr@zephyr_z9
Sad to see Xbox getting gutted 😢
Wall St Engine@wallstengine
MICROSOFT $MSFT TO CUT 6,400 JOBS, HALF IN XBOX GAMING OVERHAUL
2hViews 32.2KLikes 159Bookmarks 4
Andrew Curran@AndrewCurran_
Confirmed.
Andrew Curran@AndrewCurran_
Unconfirmed and no official post yet, but Microsoft has notified staff via internal email that they are eliminating 4800 jobs, the majority of the cuts will be concentrated in their Xbox and gaming divisions.
2hViews 3.1KLikes 70Bookmarks 3
Andrew Curran@AndrewCurran_
https://blogs.microsoft.com/blog/2026/07/06/the-latest-in-our-company-transformation/
Andrew Curran@AndrewCurran_
Confirmed.
2hViews 4KLikes 32Bookmarks 2
Andrew Curran@AndrewCurran_
Four gaming studios are being spun off. CNBC:
Andrew Curran@AndrewCurran_
https://blogs.microsoft.com/blog/2026/07/06/the-latest-in-our-company-transformation/
2hViews 2.5KLikes 28Bookmarks 0
Andrew Curran@AndrewCurran_
@07_rabel Google has big plans with Genie.
2hViews 189Likes 2
rabel_07@07_rabel
@AndrewCurran_ 마이크로소프트에서도 Xbox는 더이상 성장성이 없다고 생각하는 걸가요~? AI가 일상을 대체할때 게임 산업도 새로운 전환점이 생길거 같은데 조금 더 미래를 바라보면 어떨가 합니다~
2hViews 143Likes 2
Salio@Mr_Salio
@AndrewCurran_ Let me check my email I think I am cooked 😂😭
2hViews 66Likes 2
Jan Stevens@janstevens
@AndrewCurran_ Brutal if confirmed, especially with Xbox and gaming taking most of it. Hope people get real support, not just a quick internal note.
2hViews 111Likes 1
Kol Tregaskes@koltregaskes
@AndrewCurran_ Some of these are from the Xbox "reset" that has been talked about for a little while after they removed Phil Spencer for a new boss.
2hViews 53Likes 1
Andrew Curran@AndrewCurran_
@janstevens Confirmed.
2hViews 150
Zephry@ohmydarlinohmy
@zephyr_z9 My strategy plan.
⬇️
2hViews 14
Archimedes@arXmedes
@zephyr_z9 Sorry to say but you don’t need 6,400 people working on XBOX gaming
2hViews 92Likes 2
bone@boneGPT
@AndrewCurran_ Double Fine independent makes more sense. They don't produce games at a public company pace.
1hViews 71Likes 2
Kol Tregaskes@koltregaskes
@AndrewCurran_ They have been buying studios like mad and pushing Game Pass, which is just not viable at the previous subscription prices. It does read that no studio is being closed, thank goodness. Some of those studios are quite legendary.
2hViews 49Likes 2
Tom@TomSzczypka
@zephyr_z9 Jacked up console prices are sad to see, people will ve forced to go out and do stuff
2hViews 115Likes 1
Chris@ChrissGPT
@AndrewCurran_ @koltregaskes Damn I love Xbox sad to see
1hViews 98Likes 1
Kyle Balmer@iamkylebalmer
@AndrewCurran_ oof. horrible news for the 4800
and so so many games cancellations too. my hopes for state of decay 3 are.. well, decaying
2hViews 53Likes 1
Kol Tregaskes@koltregaskes
@AndrewCurran_ Several gaming studios to be sold off as well. Very sad. I don't think this has affected any of my ex gaming colleagues yet.
2hViews 31Likes 1
pitching downrange@OwnerEmeritus
@AndrewCurran_ Sharma’s blog a few weeks ago basically telegraphed this, sucks but not a shock.
2hViews 30Likes 1
Macro@Macroplane
@zephyr_z9 who needs games when you can just use claude/codex
2hViews 89
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