
Technology
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Microsoft cuts 4800 jobs in major Xbox restructure
BBC··7 Jul
Microsoft announced roughly 4,800 job cuts on July 6, 2026, about 2.1 percent of its workforce, with Xbox bearing more than 1,600 immediate layoffs. New Xbox chief executive Asha Sharma said another 1,600 roles would go over the coming year. Four game studios including Double Fine and Ninja Theory will be spun off from Xbox.
Prism
What It Means For You
- Game developers face job losses across major Xbox studios.
- Players may see shifts in which titles stay on Game Pass.
- Console price rises and AI spending affect consumer tech costs.
What's Happening
- Microsoft cut 4,800 jobs including 1,600 at Xbox immediately.
- Four studios will be spun off from Xbox ownership.
- Asha Sharma called it the most significant Xbox restructure.
Industry Context
- Xbox cut 2,000 roles and closed studios in 2024.
- Microsoft acquired Activision-Blizzard in a landmark deal.
- Hardware costs have risen amid AI data centre demand.
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