Microsoft will eliminate about 4,800 jobs, roughly 2 % of its global workforce. About 30 % of the job losses will affect the Xbox division, including 3,200 gaming jobs to be shed over the coming fiscal year and 1,600 jobs cut immediately. The company is selling or spinning off four Xbox studios as part of the cuts. Executive Vice President and Chief People Officer Amy Coleman wrote a memo stating, "Our business is changing because the world around it is changing." The eliminated roles will not be replaced by artificial intelligence.

Seattle experienced three overnight shootings that left six people injured, according to bluesky. Outlookbusiness.com reported that Microsoft may cut up to 2.5 % of its workforce in fresh layoffs, that the company had around 228,000 full‑time employees as of June 30, 2026, and that the upcoming layoffs could affect thousands of employees, especially in sales, consulting and Xbox divisions.