Microsoft Lays Off 4,800 Employees, Xbox Division Cuts 3,200 on July 6

According to ChainCatcher, on July 6, Microsoft announced layoffs of 4,800 employees, representing 2.1% of its global workforce. The Xbox gaming division bore the heaviest impact, with 1,600 positions already eliminated and another 1,600 expected to be cut by fiscal year-end, totaling approximately 3,200 roles.

Xbox CEO Asha Sharma, who took over in February, disclosed that the division's profitability lags competitors and publishers by a factor of three to ten times, with rising hardware costs intensifying competition against Sony PlayStation and Nintendo Switch. Microsoft will also divest four previously acquired studios, with Compulsion Games and Double Fine becoming independent, while Ninja Theory and Undead Labs are being transferred to new owners. The company's stock has declined roughly 19% over the past six months.