Наталя Хандусенко Work 1 July 2026, 10:22

Microsoft to cut up to 2.5% of staff, including in Xbox gaming division

Microsoft plans to cut up to 2.5% of its workforce in a new wave of layoffs that could be announced as early as next week.

Microsoft plans to cut up to 2.5% of its workforce in a new wave of layoffs that could be announced as early as next week.

The cuts will affect thousands of jobs, including in sales and consulting, as well as positions in the Xbox gaming division, Reuters reports .

Rumors of a wave of layoffs at Xbox surfaced back in June . In addition, the division plans to "significantly" cut its marketing budget and reduce other expenses.

Recall that Xbox has increased prices for its game consoles worldwide due to the worsening global component crisis.

According to data from the Securities and Exchange Commission (SEC), as of June 30, 2025, Microsoft had approximately 228,000 full-time employees.

In total , almost 80,000 IT workers lost their jobs in the first three months of 2026 , of which 37,638 of these layoffs (or 47.9%) were related to a decrease in the need for workers due to the introduction of artificial intelligence and automation of work processes.