{"id":6529,"date":"2026-07-06T18:01:37","date_gmt":"2026-07-06T18:01:37","guid":{"rendered":"https:\/\/houstonmovingjournal.com\/?p=6529"},"modified":"2026-07-06T18:01:37","modified_gmt":"2026-07-06T18:01:37","slug":"microsoft-cuts-4800-jobs-including-many-in-xbox-division","status":"publish","type":"post","link":"https:\/\/houstonmovingjournal.com\/?p=6529","title":{"rendered":"Microsoft cuts 4,800 jobs, including many in Xbox division"},"content":{"rendered":"

EDMOND, Wash<\/strong> – <\/span>Microsoft announced it is cutting nearly 5,000 jobs, including a large number of workers at its Xbox video game business.<\/p>

Read more Lauren Bennett, \u2018Party Rock Anthem\u2019 singer, dies<\/a><\/p>

Microsoft cuts jobs<\/h2>

By the numbers:<\/p>

<\/div>

According to a statement, the technology corporation is cutting 4,800 jobs, or about 2.1% of its global workforce.\u00a0<\/p>

The layoffs include 1,600 Xbox workers with more to come this year.<\/p>

Microsoft said the move is part of a broader reorganization designed to “reset” Xbox as it faces heightened competition.<\/p>

“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.”<\/p>

\n
\"\"<\/figure>\n

A view of the Microsoft corporate logo in front of the Microsoft Office building on 41st street and 8th avenue on July 19, 2024 in New York City. (Credit: Craig T Fruchtman\/Getty Images)<\/span> <\/p> <\/div><\/div>

Sharma said the industry, in which\u00a0Xbox<\/u> competes with Sony’s PlayStation and Nintendo’s Switch, is facing a severe “hardware crisis” as costs soar for\u00a0console components<\/u>.<\/p>

She said to expect another 1,600 job cuts over the course of the fiscal year that began last week.\u00a0<\/p>

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The company will also spin off four video game development studios previously acquired by Microsoft.<\/p>

Microsoft offered voluntary buyouts<\/h2>

The backstory:<\/p>

The layoffs followed voluntary buyouts that Microsoft began offering to 8,750 people in May.<\/p>

The software giant’s chief people officer, Amy Coleman, said Monday that more than 30% of eligible workers accepted the voluntary retirement offers.<\/p>

Layoffs come amid rise of AI, cuts to funding<\/h2>

Big picture view:<\/p>

The news comes as the rise of AI and automation are changing staffing needs.\u00a0<\/p>

In May, Meta Chief Executive Officer Mark Zuckerberg blamed AI and capital spending for recent layoffs and said more could be coming.<\/p>

RELATED:\u00a0<\/strong>2026 layoffs: List of companies cutting jobs this year<\/u><\/strong><\/p>

Last month, Johns Hopkins University said it had laid off more than 100 employees, citing cuts \u200bin federal research funding.<\/p>

Read more Former NFL player Marcellus Wiley arrested on domestic battery charge<\/a><\/p> <\/div>","protected":false},"excerpt":{"rendered":"

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