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Microsoft to Cut <2.5% Staff, Hit Sales, Xbox Divisions

7/1/2026

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Summary

Story summary

Microsoft announced it will cut fewer than 2.5% of its 220,000 employees next week.
The layoffs will affect thousands of roles in sales, consulting and the Xbox gaming division.
The company will immediately offer new positions to some affected workers.
After cutting 6,000 jobs in May and 9,000 in July 2025—about 4% of its workforce—Microsoft’s stock fell about 19% in the past month, its worst since the dot-com era.

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Story summary

Microsoft announced it will cut fewer than 2.5% of its 220,000 employees next week.
The layoffs will affect thousands of roles in sales, consulting and the Xbox gaming division.
The company will immediately offer new positions to some affected workers.
After cutting 6,000 jobs in May and 9,000 in July 2025—about 4% of its workforce—Microsoft’s stock fell about 19% in the past month, its worst since the dot-com era.