Microsoft is laying off 4,800 employees
Satya Nadella in February 2026. | Photo by Sven Hoppe / picture alliance via Getty Images A year after cutting around 9,100 employees, Microsoft is making further layoffs today as it begins its new financial year. The software maker is laying off around 4,800 employees today, approximately 2.1 percent of its workforce. Most of the employees affected by today's cuts are in Microsoft's commercial sales business or the company's Xbox division. In an internal memo to employees, Amy
Microsoft is laying off approximately 4,800 employees, or 2.1 percent of its workforce, as it begins its new financial year. Most of the job losses are concentrated in the company's commercial sales organization and Xbox division, with around 1,600 Xbox employees affected today and plans to eliminate approximately 20 percent of Xbox jobs by the end of the financial year. The company's chief people officer attributed the layoffs to a changing technology industry and the need to adjust operations in response to how artificial intelligence is impacting the company, while stating that the eliminated roles are not being replaced by AI. This represents a second round of significant cuts, following Microsoft's elimination of around 9,100 employees a year prior.
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Also reported by TechCrunch, Wired AI and Data Center Knowledge