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

July 6, 2026 | 12:24 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.

Neil Gorsuch Fast Facts

By CNN
August 14, 2026 | 5:34 PM

(CNN) — Here is a look at the life of US Supreme Court Justice Neil Gorsuch.PersonalBirth date: August 29, 1967Birth place: Denver, ColoradoBirth name: Neil McGill Gorsuch Father: David Gorsuch, lawyerMother: Anne Gorsuch Burford, lawyer and administrator of the EPA for nearly two years under President Ronald ReaganMarriage: Marie Louise GorsuchChildren: Emma and BelindaEducation: Columbia University, B.A., 1988; Harvard Law School, J.D., 1991; Oxford University, D. Phil., 2004Religion: Raised Catholic, attends Episcopal churchOther FactsLast name is pronounced GORE-sitch.Gorsuch is an avid skier, fly-fisherman and hiker. While at Columbia University, Gorsuch co-founded a student publication called the Federalist Paper. According to a history of the paper, its original intent was to be “content neutral.” It is now a satire publication.Gorsuch’s mother was the first woman to run the EPA. She was also the first federal Cabinet member in US history to be cited for contempt of Congress for her refusal to turn over subpoenaed documents.Notable cases include Yellowbear v. Lampert and United States v. Nichols. In Hobby Lobby Stores v. Sebelius, Gorsuch ruled in favor of the arts and craft chain, which challenged the Affordable Care Act’s requirement to provide contraceptive coverage in employee health plans. The company objected on religious grounds. His 2006 book, “The Future of Assisted Suicide and Euthanasia,” explores the legalities and ethics of medical aid in dying. He ultimately argues against “death with dignity” laws.Timeline1991-1992 - Law clerk to Judge David Sentelle, of the US Court of Appeals for the District of Columbia Circuit. 1993-1994 - Law clerk to Supreme Court Justices Byron White and Anthony Kennedy.1995-1997 - Associate at Kellogg, Huber, Hansen, Todd, Evans & Figel.1998-2005 - Partner at Kellogg, Huber, Hansen, Todd, Evans & Figel.2005-2006 - Principal Deputy to the Associate Attorney General and Acting Associate Attorney General, US Department of Justice.2006-2017 - Judge on the Court of Appeals for the Tenth Circuit, nominated by President George W. Bush.January 31, 2017 - Gorsuch is nominated by President Donald Trump to replace the late Antonin Scalia on the Supreme Court. February 8, 2017 - In a meeting with Connecticut Democratic Sen. Richard Blumenthal, Gorsuch reportedly takes exception to Trump insulting a federal judge in Seattle as a “so-called judge” via Twitter after the judge temporarily blocked the administration’s travel ban. Gorsuch describes the president’s tweets about the judiciary as “demoralizing” and “disheartening,” according to Blumenthal.March 20-23, 2017 - The Senate holds confirmation hearings for Gorsuch. On the final day of hearings, Senate minority leader Chuck Schumer says that Democrats will filibuster Gorsuch’s nomination. April 6, 2017 - The Senate triggers the so-called “nuclear option,” lowering the vote threshold on nominations from 60 to 51, allowing Republicans to break a Democratic filibuster of Gorsuch. April 7, 2017 - The Senate confirms Gorsuch to the Supreme Court with a vote of 54-45. April 10, 2017 - Gorsuch’s ceremonial swearing-in is held at the White House. June 15, 2020 - Gorsuch delivers the opinion on a landmark ruling that protects millions of LGBTQ workers from discrimination. The ruling extends protections to millions of workers nationwide and is a defeat for the Trump administration, which argued that Title VII of the Civil Rights Act that bars discrimination based on sex did not extend to claims of gender identity and sexual orientation.July 2, 2021 - Gorsuch and Justice Clarence Thomas say the Supreme Court should revisit the breadth of the landmark First Amendment decision in New York Times v. Sullivan and explore how it applies to social media and technology companies. It is the first time Gorsuch joins Thomas’ consistent calls to look at the historic ruling.May 18, 2023 - The Supreme Court announces that it would formally remove a case concerning the controversial Trump-era immigration policy known as Title 42 from its calendar, likely because the Covid-19 public health emergency that serves as the legal underpinning of the program has expired. Gorsuch raises an alarm that state and federal governments had at times gone too far in using the pandemic as a pretext to tackle other issues. Writing broadly on the impact the Covid crisis had on civil liberties, Gorsuch says that since March 2020, “we may have experienced the greatest intrusions on civil liberties in the peacetime history of this country.”June 30, 2023 - Gorsuch pens the 6-3 decision ruling in favor of a Christian web designer in Colorado who refuses to create websites to celebrate same-sex weddings out of religious objections. The court’s decision represents a devastating blow to LGBTQ protections, which have in recent years been bolstered by landmark decisions at the nation’s highest court, including one authored three years ago by Gorsuch in which the majority expanded protections for LGBTQ workers, and the 2015 case legalizing same-sex marriage nationwide.August 6, 2024 - Gorsuch’s book, “Over Ruled: The Human Toll of Too Much Law,” is published.December 4, 2024 - Announces that he will recuse himself from a case dealing with a western railway line after Democratic lawmakers called attention to the fact that a longtime ally of his could benefit from the court’s decision.May 5, 2026 - “Heroes of 1776: The Story of The Declaration of Independence,” a children’s book Gorsuch co-authored with Janie Nitze, is published.The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

Read Next Story