Microsoft is laying off 4,800 workers: ‘AI is changing how work gets done’

July 15, 2026 | 12:40 PM

A logo sits outside the Microsoft pavilion during the second day of the Mobile World Congress 2015 at the Fira Gran Via complex on March 3, 2015 in Barcelona, Spain. (David Ramos/Getty Images)

(NEW YORK) — Microsoft said on Monday it will lay off 4,800 employees and that the job cuts would be especially pronounced in its Xbox department.

The layoffs will affect 2.1% of Microsoft’s global workforce, Amy Coleman, executive vice president and chief people officer, said in a public memo to employees.

Coleman attributed the layoffs in part to a shakeup in the tech sector wrought by artificial intelligence. None of the terminated roles will be replaced by AI, Coleman noted. At the same time, she acknowledged: “AI is changing how work gets done.”

“Our business is changing because the world around it is changing. The way technology is built, deployed, and used is transforming faster than at any point in my time here,” Coleman said.

In a separate statement, Microsoft said a large share of the job cuts would impact its Xbox department, which oversees the company’s popular video game console.

In all, Xbox would slash 1,600 jobs as part of the layoffs announced on Monday, as well as an additional 1,600 cuts through the end of fiscal year 2027, Xbox CEO Asha Sharma said in a public memo to employees.

“We are beginning the most significant restructure in XBOX history,” Sharma said, adding, “Our business today is not healthy.”

Sharma pointed to weaker-than-expected performance for Xbox’s subscription service, Game Pass, which charges a monthly fee for access to a collection of games. The company faced stiff competition in its efforts to increase output of new games, Sharma added.

“We now find ourselves competing not only with the largest publishers, but also with smaller independent studios,” Sharma said.

Xbox will not cancel any of its first-party, publicly announced games or projects as part of the new plans, Sharma said.

Shares of Microsoft fell about 1% in early trading on Monday.

Copyright © 2026, ABC Audio. All rights reserved.

Trump declines to rule out declaring a national security emergency to control the 2026 election

By CNN
August 11, 2026 | 4:08 PM

(CNN) — President Donald Trump in a new interview declined to rule out declaring a national security emergency as a means to try to assert more control over the 2026 midterm elections.It’s merely the latest warning sign that Trump could try to mess with the election not just by baselessly claiming voter fraud and challenging the results afterward — as he did in 2020, leading to a violent riot at the US Capitol — but by trying to unilaterally take control before votes are cast.In the interview, Wayne Allyn Root of Real America’s Voice pitched such a scenario to Trump. He suggested it as an alternative, given the Senate has failed to pass Trump’s coveted elections bill, known as the “SAVE America Act.”“If they never get the SAVE America Act done, you have the right to declare a national security emergency for elections,” Root said. He added that “if you declare a national security emergency as the president of the United States, they can’t challenge it. It can only be overturned by a two-thirds vote by both houses of Congress. So if you do this in the next month, we will get photo ID, proof of citizenship (for voter registration) and a limit to mail-in ballots.”It’s at this point that Trump cut Root off and coyly suggested such an option was indeed in play.“Let me just say that stranger things have happened, OK?” Trump said. “I’ll leave it at that.”Despite Root’s comments, it’s far from clear such a gambit would even work. And CNN has asked the White House for more detail on what the president meant.Trump often responds to hypotheticals by declining to rule them out — no matter how extreme the proposal might be. So it’s possible to read too much into this.But as CNN’s Jake Tapper has noted, there are plenty of signals that Trump at least aspires to try to exert more control over elections. And these methods often appear transparently geared toward helping Republicans.A major one is the administration’s threat to have the US Postal Service not deliver mail ballots for states that don’t comply with its demand that they hand over their voter lists. This is a request that even many red states have rejected, citing privacy concerns.Democrats are much more likely to use mail ballots, which Trump has baselessly connected to widespread fraud. So curtailing them could greatly help Republicans.(Federal courts have blocked this Trump executive order, and the administration recently appealed to the Supreme Court.)Trump has also gone to great lengths to try to substantiate his still-baseless claims of widespread fraud. That includes the administration seizing 2020 ballots in Fulton County, Georgia, and Trump’s recent primetime address about election security that some read as a statement of intent — a pretext for more direct federal involvement in elections, which are run by states.Ty Cobb, who served as White House counsel in Trump’s first term, said he interpreted the speech last month as a “predicate that he needs to declare an emergency.”And Trump has occasionally said things, like he did in the new interview, suggesting he would like to take control of US elections.Back in February, he urged his party to “take over the voting in at least 15 places,” adding: “The Republicans ought to nationalize the voting.”The Washington Post also reported in March that pro-Trump activists were circulating a potential executive order that claimed Chinese interference in the 2020 election gave Trump emergency authorities over the 2026 election. And Trump’s primetime address focused on China, despite the tenuous evidence.Trump’s intense focus on the “SAVE America Act,” which has never appeared to have a chance to pass but Trump has said is vital, could also be read as part of building the case for more drastic action.But whether Trump could take over elections himself, as Root posits, is far from certain.As CNN’s Marshall Cohen and Michael Williams reported in February, the Constitution makes it difficult for Trump to truly “nationalize” elections. Courts have overwhelmingly upheld the principle that states are in charge of elections.Presidents generally have more authority to act unilaterally when national security is involved — hence the significance of invoking China — but some experts are skeptical that Trump’s effort would pass legal muster.The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

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