Microsoft cuts 4,800 jobs and shrinks Xbox in 'significant restructure'
Summary
Microsoft announced it will cut 4,800 jobs, about 2.1% of its workforce, with Xbox facing a large part of the layoffs. Xbox's new chief, Asha Sharma, said the company is starting a major restructuring, including spinning off four game studios, to focus on future growth amid changes in the gaming industry.Key Facts
- Microsoft will cut 4,800 jobs company-wide, which is around 2.1% of its employees.
- More than 1,600 Xbox jobs will be cut immediately, with another 1,600 cuts planned over the next year.
- Four Xbox game studios—Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs—will be spun off.
- Xbox CEO Asha Sharma described the restructuring as the most significant in Xbox history.
- Microsoft said the job cuts are to focus on areas that benefit customers in a fast-changing industry.
- Microsoft will not replace the lost roles with AI but acknowledges AI is changing how work is done.
- The gaming industry is already experiencing challenges, including past layoffs, studio closures, and rising hardware costs.
- Mojang (Minecraft developer) and King (Candy Crush developer) will now report directly to Asha Sharma.
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