![\"Microsoft](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/07\/1783345729.webp\" "\\"Microsoft")
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Credit: blog.stacklegend.com<\/p>\n
Microsoft announced on Monday that it plans to lay off about 4,800 employees, roughly 2.1% of its global workforce, confirming an earlier report by Business Insider. <\/p>\n
The cuts mostly impact the sales and\u00a0Xbox gaming organizations, Microsoft HR chief Amy Coleman wrote in an email to employees. Microsoft’s Xbox division also plans to cut 20% of its workforce this fiscal year. Xbox will account for 1,600 of Monday’s cuts, News.Az<\/a> reports, citing Business Insider.<\/a><\/p>\n Microsoft<\/a> is cutting costs as it\u00a0spends heavily in AI infrastructure,\u00a0while facing growing\u00a0investor concerns\u00a0that AI could upend traditional software. Those worries helped\u00a0send Microsoft’s stock down 19% in June,\u00a0its worst monthly performance since the dot-com era.<\/p>\n Microsoft typically cuts jobs around the start of its new fiscal year on July 1. Last year, the company eliminated\u00a06,000 roles in May\u00a0and\u00a0an additional 9,000 employees, or about 4% of the company’s workforce, in July.<\/p>\n Microsoft had more than 220,000 employees prior to the cuts.<\/p>\n As part of cost-cutting, Microsoft also earlier this year\u00a0launched a voluntary retirement program\u00a0offering buyouts to some employees.<\/p>\n About one-third of nearly 9,000 eligible employees took the buyout, in line with expectations, according to a person familiar with the program. That allowed Microsoft to cut a lower percentage of its workforce compared to last year, this person added.<\/p>\n