Microsoft to Lay Off Staff in Sales, Consulting, and Xbox Teams in 2026

Microsoft has initiated a significant wave of layoffs across the company as it enters fiscal year 2026. The cuts are reported to target particularly the sales, consulting, and Xbox units. This move is seen as part of the tech giant's strategy to reduce costs and increase operational efficiency. According to internal sources, while the scale of the layoffs has not yet been clarified, notifications have begun to be sent to employees in the affected teams. The reductions in sales and consulting teams are linked to Microsoft's efforts to restructure its corporate customer relationships, while the cuts on the Xbox side are viewed as a reflection of the gaming division's refocusing process. This development follows Microsoft's investments in recent years in high-growth areas such as artificial intelligence and cloud computing. As the company directs resources toward more profitable and strategically important units, it prefers to downsize in traditional business lines. The layoffs are expected to improve Microsoft's overall cost structure and increase shareholder value. Joining the recent wave of layoffs in the technology sector, Microsoft aims for a leaner and more focused organizational structure for 2026 with this step. The company is expected to more clearly reveal the financial results of this restructuring in the coming quarters. This is not investment advice.