Story perspectives

Microsoft cuts 3,200 Xbox jobs, raises console prices.

7/9/2026

Summary

Microsoft Cuts Jobs

Microsoft will cut about 3,200 Xbox jobs, with 1,600 layoffs on July 6 and the rest later.
Xbox prices will rise on August 1, adding $100 to 512 GB models and $150 to 1 TB models, ending the 2 TB option.
Senator Bernie Sanders noted Microsoft’s $101.8 billion net income on $281.7 billion revenue for FY2025 and its $12.5 billion tax break, saying layoffs never trickle down.
Double Fine and Compulsion Games will go independent.

Summary

Microsoft Job Cuts

Amy Coleman said the cuts affect about 2.1% of the global workforce, roughly 4,800 jobs.
Microsoft's shares moved from $386.74 on Monday (down 0.96%) to $392.16 in Tuesday trading (up 1.40%).
Benzinga Edge Rankings placed Microsoft in the 90th percentile for Quality though short-term returns turned negative.
Sanders cited an $8 billion tax break that pushed Microsoft’s quarterly tax rate to negative 23%, linking it to criticism of Trump-era tax policy.

History

Historical Context

The 2017 Tax Cuts and Jobs Act, signed by President Donald Trump, slashed the U.S. corporate tax rate from 35% to 21%. Congressional estimates projected a $1.5 trillion deficit increase, while companies like Apple and Amazon reported $20 billion combined tax savings in 2018. Today, Microsoft’s $8 billion tax break, highlighted by Senator Bernie Sanders, mirrors the 2017 legislation’s corporate incentives and ensuing public criticism. The pattern suggests future congressional hearings may intensify, potentially reshaping tax policy and prompting further workforce reductions across tech giants.

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Microsoft Cuts Jobs

Microsoft will cut about 3,200 Xbox jobs, with 1,600 layoffs on July 6 and the rest later.
Xbox prices will rise on August 1, adding $100 to 512 GB models and $150 to 1 TB models, ending the 2 TB option.
Senator Bernie Sanders noted Microsoft’s $101.8 billion net income on $281.7 billion revenue for FY2025 and its $12.5 billion tax break, saying layoffs never trickle down.
Double Fine and Compulsion Games will go independent.

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