Microsoft announced Monday it will eliminate 4,800 positions, roughly 2% of its global workforce, with the deepest reductions falling on its Xbox gaming division. The company plans to cut 3,200 jobs from Xbox, including 1,600 immediate layoffs and 1,600 more over the fiscal year beginning July 1, 2026.
The restructuring coincides with console price increases starting August 1, with 512 GB models rising $100 to nearly $500 and 1 TB versions up $150. These cuts follow voluntary buyouts offered to approximately 8,750 employees in May, which over 30% accepted.
The impact extends to Microsoft-owned studios. About half of id Software's staff, roughly 95 people, were laid off, including most coders, the Quake Champions team, and testing personnel. The cuts may affect future DLC plans for Doom: The Dark Ages.