Microsoft cuts 4,800 jobs as it revamps Xbox in latest wave of mass layoffs
Summary
Microsoft announced it will cut about 4,800 jobs, including 3,200 in its Xbox division, to reduce costs and restructure the gaming business. The changes include selling or spinning off four game studios and reviewing options for a fifth studio, aiming to make Xbox more profitable by 2027.Key Facts
- Microsoft is cutting around 4,800 jobs, about 2% of its workers worldwide.
- About 3,200 of these cuts will happen in the Xbox gaming division over the next fiscal year.
- Four Xbox game studios will be sold or spun off, and a fifth studio is being reviewed for possible closure or sale.
- Xbox CEO Asha Sharma said the division’s profit margins are much lower than competitors.
- Some jobs in Microsoft’s commercial business are also being cut to support AI efforts.
- Microsoft is investing $2.5 billion to help customers adopt AI with 6,000 engineers working inside those companies.
- Xbox has had multiple rounds of layoffs since Microsoft bought Activision Blizzard in 2024.
- The restructuring aims to make Xbox healthier financially and achieve growth by 2027.
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