Microsoft's 4,800 Layoffs

Generative AI 101 · Jul 8, 2026 · 8m

Microsoft cut 4,800 jobs, and the savings cover roughly two days of its AI infrastructure spending. Host Emily Laird runs the arithmetic the press release skipped: a $190 billion capex bill, an Xbox division losing 64 cents on every dollar, and a $625 billion backlog where nearly half the money traces back to one cash-burning customer. This is the story of a company growing 18 percent while shedding a trillion dollars in market value. The layoffs were never a savings plan, they were a message.

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