Microsoft cuts 4,800 positions, insists jobs 'not being replaced by AI'

Category: Markets

Published: 2026-07-06T15:13:23.000Z

Microsoft announced it will cut 4,800 jobs, or 2.1% of its global workforce, as it restructures to prioritize artificial intelligence investments. The layoffs will primarily affect its commercial and Xbox organizations, with Xbox alone eliminating about 3,200 positions. Microsoft's Chief People Officer Amy Coleman stated that the job reductions are not a direct result of AI replacing employees but acknowledge AI is changing how work is done and tasks can be automated.

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