Special Reports

Microsoft cuts 4,800 jobs, including many at Xbox

Published

2 months ago

July 7, 2026

Joseph Imo

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Microsoft cuts 4,800 jobs, including many at Xbox

Microsoft is cutting 4,800 jobs, about 2.1% of its global workforce, including a large number of workers at its Xbox video game business.

The layoffs included 1,600 Xbox workers.

More layoffs are expected to come this year in a broader reorganization designed to “reset” Xbox as it faces heightened competition, the company said Monday, July 6.

“Our business today is not healthy,” said a memo from Xbox CEO Asha Sharma, who took over the gaming division earlier this year.

“We are operating at margins that are 3-10x lower than comparable platform and publishing businesses.”

Sharma said the industry, in which Xbox competes with Sony’s PlayStation and Nintendo’s Switch, is facing a severe “hardware crisis” as costs soar for console components.

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Joseph Imo

I am a seasoned journalist known for my incisive reporting and unwavering commitment to journalistic integrity. As a key member of the nop.ng team, I specialize in delivering balanced coverage of socio political developments and cultural affairs throughout Nigeria. Driven by a passion for uncovering the truth regardless of the complexity of the issue I have established myself as a trusted voice in Nigeria’s dynamic media landscape, continually striving to empower my audience with clear, contextually rich news.