Microsoft is cutting about 2.1% of its workforce, or roughly 4,800 jobs, the latest in a wave of tech layoffs as the Windows maker spends heavily on AI infrastructure and ​uses the technology to improve efficiency across its business.

The next round of Microsoft layoffs align with the start of new fiscal year on July 1. These job cuts follow a pattern of fiscal-year restructuring.

Microsoft is reportedly preparing another round of layoffs that could affect thousands of employees across sales, consulting and Xbox as it continues investing heavily in AI.

The U.S. ISM Services PMI Index came in at 54.0 in June, roughly in line with the 54.1 consensus and slowing from 54.5 in May, marking the 24th consecutive month of expansion. The prices index reading of 67.

Microsoft has announced sweeping layoffs and other dramatic changes resulting in 4,800 layoffs across the company, including 3,200 at Xbox specifically. What’s led to this? According to one expert, Microsoft CEO Satya Nadella and his “catastrophic mismanagement” of the company is to blame.

Employees at Rockville video game developer Zenimax were caught up Monday in Microsoft's widespread Xbox layoffs.

A post on the game's forums stated that the studio was committed to the game, but “the roadmaps we previously shared will be shifting.” Original story, July 6, 2026: Details have emerged on the sweeping job cuts announced today by Xbox CEO Asha Sharma,

On Monday, Xbox announced it was laying off 1,600 employees, with 3,200 in total to be laid off by the end of its fiscal year. Xbox is divesting from four studios, with the future of a fifth, Dishonored developer Arkane Studios,

As part of the 1,600 people being let go by Xbox during its big reset on July 6, it appears that the company’s Accessibility division has been hit pretty heavily as well. According to a now-deleted July 6 Bluesky post,

The makers behind “South of Midnight,” “Hellblade,” “Psychonauts,” and “State of Decay” are already affected.