Microsoft is cutting about 4,800 jobs worldwide, with its Xbox gaming business facing some of the deepest reductions as the company reshapes its operations and continues investing heavily in artificial intelligence. The layoffs represent just over 2% of Microsoft’s global workforce and come after several rounds of job cuts across the technology sector over the past year.
In a message to employees, Chief People Officer Amy Coleman said the company is adapting to rapid changes in the technology industry. She noted that artificial intelligence is changing how work is done, although Microsoft said the affected positions are not being replaced by AI. The company has committed billions of dollars to expanding its AI infrastructure while looking for ways to manage rising costs.
Xbox will account for roughly 3,200 of the planned reductions during the 2027 fiscal year, including 1,600 positions that will be eliminated immediately. Xbox CEO Asha Sharma said the gaming business needs to reset after years of acquisitions that failed to deliver the expected growth. Microsoft also plans to spin off some game studios and place others under new management as it narrows its focus.
The restructuring comes as Xbox faces slower revenue growth, weaker demand for consoles, and rising hardware costs. Despite the cuts, Microsoft said it will continue investing in its gaming business, but with greater discipline as it tries to strengthen Xbox’s long-term position in an increasingly competitive market.
Related Readings:
