Why was Xbox hit hardest by the July 2026 cuts?
Xbox CEO Asha Sharma said the division's margins run "3–10x lower than comparable platform and publishing businesses" and called the overhaul "the most significant restructure in Xbox history." Management layers are being cut from 14 to a maximum of five, and four studios are being spun off or moved to new ownership.
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Microsoft Just Cut 4,800 Jobs — During Its Best Revenue Quarter EverMicrosoft cut roughly 4,800 jobs (2.1% of staff) on July 6, 2026 — Xbox hit hardest — weeks after posting $82.9B in record quarterly revenue.
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