Microsoft cuts 4,800 jobs, sets four Xbox studios loose
Microsoft is eliminating about 4,800 roles, 2.1% of its workforce, with the deepest cuts in its commercial and Xbox units, where four game studios will leave the company.
- Chief People Officer Amy Coleman said the cuts are around 4,800 roles, about 2.1 percent of the global workforce, and fall mostly within the Commercial and Xbox organizations.
- Xbox is reducing its team by roughly 3,200 through fiscal 2027, with about 1,600 roles gone immediately, wrote gaming chief Asha Sharma in a post titled "Resetting Xbox."
- Four studios exit: Compulsion Games and Double Fine become independent with their IP; Ninja Theory and Undead Labs move to new owners to finish Senua and State of Decay 3; Arkane's future is under review.
Why it mattersMicrosoft is one of the most profitable companies on earth, yet it is shedding thousands of jobs and offloading studios it spent years acquiring. Sharma said Xbox lost 64 cents for every dollar it invested in a typical year.
Microsoft, "The latest in our c… ↗ · Jul 6, 2026 · ✓ Checked