ExclusiveMicrosoft to Cut 4,800 Jobs, Trimming Commercial Sales Organization and Xbox Gaming Division

Microsoft is cutting roughly 4,800 jobs, representing about 2.1% of its global workforce as the tech giant restructures at the start of its new fiscal year. The reductions primarily target the commercial sales organization and the Xbox gaming division. Microsoft announced the cuts on Monday following a rough stretch, with its shares falling nearly 23% in the first six months of 2026, their worst first-half performance since 2022. The software giant often trims jobs near the end of its fiscal year in June as it sets spending plans for the new year. It offered voluntary buyouts to about 7% of its U.S. workforce, or about 9,000 employees earlier this year. The move comes amid heavy capital spending on artificial intelligence infrastructure. Big Tech's historic AI outlays, set to top $700 billion this year, are piling pressure on companies to show returns from the technology and offset the rising cost of rolling it out across their businesses.