Microsoft Cuts 4,800 Jobs While Pouring Billions Into Buybacks

The layoffs, which primarily impact the Xbox division, represent a two percent reduction in the company's global workforce. These cuts arrive despite significant federal tax windfalls. Following the 2017 tax law and last year’s One Big Beautiful Bill Act, Microsoft has secured billions in savings, including new deductions for artificial intelligence infrastructure. Since 2018, the firm has returned roughly $139.5 billion to shareholders through stock buybacks, with an additional $13.3 billion spent in the first nine months of fiscal year 2026 alone.

Executive Amy Coleman framed the decision as a necessary pivot in a shifting technological landscape, insisting that the move is not a direct replacement of staff by AI. However, critics point to the company's robust market position—valued at over $2.8 trillion—as evidence that these reductions are a choice rather than a necessity. With more than 20,000 employees departed since 2025, the disconnect between record-level shareholder returns and a shrinking payroll has drawn sharp scrutiny from industry analysts.