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Microsoft Cuts 3,200 More Jobs Beyond Gaming
6 Jul
Summary
- Microsoft announced 3,200 additional job cuts outside its gaming division.
- These layoffs are separate from the recent Xbox division firings.
- AI's impact on future job automation was acknowledged by leadership.
Microsoft has expanded its recent job cuts, announcing an additional 3,200 layoffs primarily affecting its Commercial Business segment. These reductions are separate from the significant layoffs impacting the Xbox division earlier this week.
Across both gaming and non-gaming divisions, Microsoft is eliminating 4,800 positions, which accounts for 2.1% of its worldwide employees. While the current roles are not being directly replaced by artificial intelligence, company leadership noted that AI is actively transforming how tasks are performed and the nature of work itself.
This development follows the recent news of 1,600 employees being laid off from Xbox, with further reductions anticipated in the coming months. Several Xbox studios are also being spun off. Earlier in July 2025, Microsoft laid off 9,000 employees across various divisions.
