July 06, 2026 1:47 PM ET Microsoft announced Monday that it is cutting 4,800 Xbox jobs amid an era in which the rise of artificial intelligence is transforming the tech industry. The technology giant, which Bill Gates cofounded a half century ago, is cutting 2.1% of its workers mainly within the Xbox Gaming Division. Microsoft will immediately axe 1,600 workers as the company focuses on how to deliver during a “fast changing industry,” according to a Monday memo sent out by executive vice president Amy Coleman.“The way technology is built, deployed, and used is transforming faster than at any point in my time here. Our customer’s 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