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Microsoft’s Redmond headquarters, where the company that just cut 1,600 Xbox jobs remains one of the nation’s largest users of the H-1B foreign worker visa program. (Photo: Sean Gallup

Microsoft (MSFT) on Monday announced it is cutting 4,800 roles across the company, roughly 2.1% of its workforce. The bulk of the layoffs, 3,200, will come from Microsoft’s Xbox division. 

Twenty percent of Xbox’s workforce is gone. CEO Asha Sharma confirmed in an internal memo that roughly 3,200 jobs will be eliminated over Microsoft’s fiscal 2027, with 1,600 cuts hitting immediately. The headline number isn’t the story. The story is what Sharma said next: Xbox lost 64 cents on every dollar it invested in content.…

The Microsoft campus in Mountain View, California, on January 26, 2026. See all topics

Microsoft has announced it has cut 4,800 jobs – roughly 2.1% of its workforce – with Xbox to bear a large number of its latest layoffs

Microsoft (MSFT) on Monday announced it is cutting 4,800 roles across the company, roughly 2.1% of its workforce. The bulk of the layoffs, 3,200, will come from Microsoft’s Xbox division. 

Microsoft is cutting 4,800 jobs as part of its strategy to redirect ren in the gaming sector is getting widespread media coverage, the significant focus is on operational investments. This shift highlights Microsoft’s priority in AI advancements over traditional segments

Microsoft has commenced what it describes as the “most significant restructure in Xbox history” and confirmed it will be eliminating 3,200 roles across its video game division by the end of the current fiscal year. 

Microsoft has announced it is cutting 4,800 jobs, including many in its Xbox division

Thousands of gaming jobs will be shed over the coming fiscal year as Microsoft continues to invest heavily in AI