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Microsoft cuts 4,800 jobs and says AI is not replacing those roles

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Microsoft said it would cut 4,800 jobs, about 2.1% of its workforce, and overhaul Xbox, including a plan to divest up to five studios. Chief people officer Amy Coleman told employees the eliminated roles are not being replaced by AI, and that AI is still changing how the work gets done.

“I also want to be direct that the roles eliminated today are not being replaced by AI. At the same time, what is true is that AI is changing how work gets done.”

Amy Coleman, chief people officer, in a memo to employees

The original

Microsoft to cut 4,800 jobs, overhaul Xbox unit

Reuters · Aditya Soni and Akash Sriram · 6 Jul 2026

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