Microsoft Cuts Thousands of Jobs in July 2026 Amid Major Xbox Restructuring

Did Microsoft Cut Jobs in July 2026?

Yes. Microsoft announced on July 6, 2026 that it’s immediately cutting 4,800 jobs (around 2.1% of its workforce) — with Xbox making up around 1,600 of those role eliminations.

In an email to staff, Xbox CEO Asha Sharma said the video game giant plans to axe approximately 3,200 positions “throughout FY27.”

“I recognize that a year-long restructuring creates additional challenges. Unfortunately, it is not possible to make all the necessary changes in a single day, and I wanted to be direct about the scale.”

Sharma added that 4 studios — Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Lab — will “leave Xbox to new management.”

• SEE ALSO: Microsoft’s LinkedIn Cutting 5% of Staff, Part of 2026 Restructuring

Impact on Canadian Staff

It remains unclear how many Canadian employees at Microsoft and Xbox are affected by the latest restructuring.

According to LinkedIn, the tech giant currently has more than 5,600 workers in the country.

More Microsoft, Xbox Layoff Coverage

For a full overview of layoffs at Microsoft or Xbox, and the rights that non-unionized employees in Canada have in this situation, see our Microsoft Layoffs & Severance Guide.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.