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Xbox

Microsoft's gaming division and console brand.

Last refreshed: 9 July 2026 · Appears in 1 active topic

Timeline for Xbox

#166 Jul

Lost 1,600 roles immediately with 1,600 more through FY2027

AI: Jobs, Power & Money: Microsoft cuts 4,800, denies AI did it
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Common Questions
How many jobs did Xbox cut in July 2026?
Xbox lost 1,600 roles immediately on 6 July 2026, with a further 1,600 roles to go through the end of Microsoft's 2027 financial year.Source: event
What did Asha Sharma say about the Xbox job cuts?
Xbox gaming chief Asha Sharma called the cuts the most significant restructure in Xbox history, telling staff "our business today is not healthy."Source: event
Did AI cause the Microsoft Xbox layoffs?
Microsoft's chief people officer Amy Coleman denied AI directly replaced the cut roles while still describing the change as AI-driven transformation, a framing economists have called "AI redundancy washing."Source: event

Background

Microsoft's 6 July 2026 cut of 4,800 jobs, about 2.1% of its global workforce, fell hardest on Xbox, which lost 1,600 roles immediately with a further 1,600 to go through the end of its 2027 financial year. Gaming chief Asha Sharma called it the most significant restructure in Xbox history, telling staff "our business today is not healthy."

Xbox is Microsoft's gaming division, spanning console hardware, the Xbox Game Pass subscription service and first-party studios including Activision Blizzard, Bethesda and Xbox Game Studios following Microsoft's 2023 Activision Blizzard acquisition. The division has undergone repeated rounds of layoffs and studio closures since that deal closed.

Microsoft chief people officer Amy Coleman denied the cut roles were being replaced by AI while simultaneously describing the change as AI-driven transformation, a framing Barclays economist Pooja Sriram labelled "AI redundancy washing": part genuine productivity substitution, part AI-branded cost-cutting that would have happened regardless.