Tuesday, July 7, 2026

Microsoft axes thousands of jobs as reality of AI era sets in

 Microsoft is laying off 4,800 employees, primarily from its Xbox Gaming Division, as the company adapts to rapid changes driven by artificial intelligence.

● The cuts amount to 2.1% of Microsoft's workforce, with 1,600 jobs eliminated immediately.

● Executive vice president Amy Coleman highlighted the need for transformation in response to shifting technology and customer demands.

● Asha Sharma, the new CEO of Microsoft Gaming, announced that 3,200 jobs will be reduced throughout FY27, including four Xbox studios transferring management.

● Microsoft aims to streamline its management structure from 14 layers to five for efficiency.

● The company faces low profit margins and rising costs while navigating a changing market environment.

These layoffs reflect Microsoft's strategy to adapt to the evolving tech landscape and address business challenges linked to AI advancements.

https://www.bizpacreview.com/2026/07/06/microsoft-axes-thousands-of-jobs-as-reality-of-ai-era-sets-in-1649473/

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