Microsoft lays off nearly 5,000 employees with more expected

TechnologyBusiness & Finance
7 Jul 2026 • 1:29 AM MYT
The Independent
The Independent

The world’s most free-thinking newspaper

Microsoft lays off nearly 5,000 employees with more expected

  • Microsoft is eliminating 4,800 jobs, approximately 2.1% of its global workforce, with a significant portion impacting its Xbox video game division.
  • Xbox CEO Asha Sharma stated the gaming unit is “not healthy,” citing low margins and a “hardware crisis” due to soaring costs for console components.
  • The company confirmed 1,600 Xbox workers have already been laid off, with more expected as part of a broader reorganization.
  • Microsoft is facing a class-action lawsuit in Wisconsin from residents near its Fairwater data center in Mount Pleasant.
  • The lawsuit alleges the data center causes unreasonable and excessive noise pollution due to Microsoft's failure to implement adequate acoustic barriers, seeking unspecified damages.

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