Microsoft starts a new round of job cuts and the next phase of its Xbox 'reset.' Read the memo.

Business Insider | 22-09-2026 04:27pm |

Microsoft initiated a new round of layoffs on Tuesday, affecting around 500 employees. The cuts are primarily in the Xbox gaming division, with a small number of roles also eliminated in other units such as Cloud + AI. This follows layoffs in July, when Microsoft announced it would trim 2.1% of its global workforce, or about 4,800 employees. The latest cuts are part of Xbox's effort to slim down its gaming business, including a plan to eliminate roughly 20% of its workforce by the end of the fiscal year.

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