Microsoft Shares Fall After Report of Planned Xbox Layoffs and Budget Cuts
Jun 11, 2026
Microsoft shares fell on Thursday after a Bloomberg report said the company’s Xbox division is preparing major layoffs next month and cutting marketing and other budgets.
The report said the gaming unit is expected to announce the layoffs shortly after Microsoft’s fiscal year ends on June 30. The stock slipped even as the wider market rose, with the Nasdaq and S&P 500 both closing higher.
The weaker share price came despite ongoing investor interest in Microsoft’s artificial intelligence business and after the company had already posted a third-quarter earnings beat.
Why did Microsoft stock fall today?
Microsoft shares fell after a report said its Xbox division is planning major layoffs and budget cuts.
Which part of Microsoft is affected?
The report focused on Microsoft’s Xbox gaming division.
Did the broader market also fall?
No. The broader market rose, while Microsoft shares declined.
Is this about Microsoft’s AI business?
No. The report was about the Xbox division, although Microsoft’s AI efforts were still seen positively by investors.
Sources
Microsoft's Xbox plans for major layoffs next month, Bloomberg News reports
Reuters
Reuters
Microsoft's Xbox division is planning major layoffs next month and significant cuts to marketing and other budgets, Bloomberg News reported on Wednesday.
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Microsoft stock has been struggling despite the software maker's earnings beat for its third quarter.
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Microsoft's AI business is doing well. Microsoft's stock has rarely traded at a price-to-cash-from-operations valuation this low.
Microsoft's Xbox Unit Braces For Major Layoffs
Benzinga
Benzinga
Microsoft Corp. (NASDAQ:MSFT) stock slipped on Thursday after a report said the company's Xbox division is preparing significant layoffs and budget cuts following the close of Microsoft's fiscal year. The decline came despite a broader market rally, with the Nasdaq gaining 1.48% and the S&P 500 adva...
Why is Microsoft stock falling today?
Invezz
Invezz
Microsoft shares MSFT declined on Thursday after a report indicated that the company's Xbox division is preparing significant layoffs and budget reductions, overshadowing continued optimism surrounding Microsoft's artificial intelligence strategy. According to a Bloomberg report, Microsoft's gaming...
Microsoft (MSFT) Stock Falls Amid Market Uptick: What Investors Need to Know
Zacks Investment Research
Zacks Investment Research
Microsoft (MSFT) reached $390.29 at the closing of the latest trading day, reflecting a -1.78% change compared to its last close.
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The Motley Fool
The Motley Fool
Expand NASDAQ: MSFT Microsoft Today's Change (-1.75%) $-6.96 Current Price $390.40 Key Data Points Market Cap $3.0T Day's Range $384.00 - $396.80 52wk Range $356.28 - $555.45 Volume 1.7M Avg Vol 34.5M Gross Margin 68.31% Dividend Yield 0.90% Microsoft (MSFT 1.75%), a leading software and cloud platf...
Why Microsoft Stock Slipped Today
The Motley Fool
The Motley Fool
This is derived from concerns about the AI spending reported by a peer sector giant. It also appears as if the Xbox business isn't doing well.
Microsoft Stock Is Having a Rough Week. It's the Latest AI Play Under Pressure.
Barrons
Barrons
Tech stocks are selling off amid renewed artificial-intelligence spending concerns, Microsoft included.
Microsoft has considered spinning out Xbox, The Information reports
Reuters
Reuters
Microsoft is considering options for its Xbox gaming unit, including a potential spinoff or restructuring as a wholly owned subsidiary, The Information reported on Friday, citing three people with direct knowledge of the discussions.
Monster insider trading alert for Microsoft stock in June
June saw a sudden and large uptick in Microsoft (NASDAQ: MSFT) stock insider selling activity.
Microsoft's Giant's Valuation Reset Creates a Real Dilemma
The Motley Fool
The Motley Fool
Microsoft (MSFT +2.02%) is caught between powerful AI momentum and rising investor doubts about capex, margins, and execution risk. The stock's valuation reset may look worrying, but Azure growth, agentic AI, and a quantum breakthrough could point to stronger long-term earnings power if the company...
Microsoft Faces Shareholder Lawsuit Over Alleged AI Spending Cover-Up
PYMNTS
PYMNTS
Microsoft shareholders sued the company Friday (June 12), alleging that it defrauded them and inflated its stock price by concealing slower growth in its Azure cloud business and a need to invest billions of dollars in artificial intelligence infrastructure, Reuters reported Monday (June 15).
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