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Microsoft Cuts 4,800 Jobs Amid Restructuring, Denies AI Replacements

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First reported by Ynet · 4 hours ago

What happened

Microsoft is laying off 4,800 employees, about 2.1% of its workforce, amid restructuring and cost-cutting efforts. The company denies AI is replacing these jobs but acknowledges AI is changing work processes. Despite cuts, Microsoft plans massive investments in AI infrastructure and data centers while Xbox faces profitability challenges.

01Microsoft cuts 4,800 jobs, about 2.1% of its workforce, in restructuring moves.
02HR chief states layoffs are not due to AI replacing workers.
03Microsoft’s stock dropped nearly 23% in the first half of 2026, its worst since 2022.
04Company plans $190 billion capital expenditure in 2026 for AI and Azure data centers.
05Xbox division profits fell to about 3%, prompting a call for a business reset.
06Microsoft previously offered voluntary retirement to 9,000 U.S. employees earlier in 2026.

Summary translated & synthesized from the sources below by baba. Read each original for the full report.

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