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# Microsoft lays off nearly 5,000 employees across Xbox, commercial sales

**[TechCrunch](https://daily.dev/sources/tc)** · 3 min read · 0 upvotes · 0 comments

## Summary

Microsoft cut approximately 4,800 employees (2.1% of its global workforce) on Monday, with Xbox and commercial sales teams hit hardest. The company's chief people officer Amy Coleman stated the roles are not being directly replaced by AI, but acknowledged AI is changing how work gets done. The layoffs coincide with Microsoft's $2.5 billion investment in its new Frontier Company AI deployment business unit. Four gaming studios will transition to new management. This follows earlier voluntary buyouts in April and ~15,000 layoffs in the prior year, and is part of a broader 2026 tech industry trend that has seen roughly 154,000 job losses in the first half of the year.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://techcrunch.com/2026/07/06/microsoft-lays-off-nearly-5000-employees-across-xbox-commercial-sales>

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Tags: [#ai](https://daily.dev/tags/ai), [#microsoft](https://daily.dev/tags/microsoft), [#xbox](https://daily.dev/tags/xbox)

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