Microsoft is laying off around 4,800 employees.
The Redmond-based tech company says the jobs are mostly within its commercial and XBOX divisions. Microsoft said it will also transition four of its gaming studios to operate under new management.
The jobs make up about 2.1% of the company’s global workforce.
According to the Seattle Times, about 600 Washington-based employees are impacted.
“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,” Amy Coleman, Microsoft’s Chief People Officer, shared in a statement. “Our customers’ needs are shifting, the business models that serve them are shifting, and that means the work itself – what we do, where we focus, and how we’re organized – has to transform too. Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it. That means we will need to adjust resources and roles and shift how we operate so we can have the greatest impact for our customers.”
Coleman went on to say that AI is not replacing these roles. However, the company is exploring what artificial intelligence can do.
“Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves,” Coleman said. “Our customers are navigating this same shift, and they’re counting on us to help them through it. We can’t do that well unless we’re doing it ourselves. This comes down to two commitments: making the decisions needed to drive differentiated customer value, and supporting the people affected by them.”
Coleman shared that more than 30% of eligible employees chose to participate in the company’s recent voluntary retirement program.
Microsoft employs roughly 220,000 globally. The company slashed approximately 15,000 positions just last year — 6,000 layoffs in May 2025 and another 9,000 layoffs in July 2025.
In Monday’s announcement, Coleman said that over the past year, the company has redeployed more than 4,000 employees into new roles.
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