Microsoft cuts 4,800 jobs as Xbox undergoes major overhaul

Microsoft cuts 4,800 jobs as Xbox undergoes major overhaul

Microsoft is laying off 4,800 employees or 2.1% of its workforce.

The company's Xbox division is particularly affected by the layoffs, with about one-fifth of its staff set to lose their jobs.

The decision comes after a voluntary retirement program and an effort to cut costs in the era of artificial intelligence (AI).

'Looking for ways to reduce the need for job eliminations'

"The way technology is built, deployed, and used is transforming faster than at any point in my time here," Amy Coleman, Microsoft's chief people officer and a 27-year company veteran, wrote in a message to employees Monday.

"Decisions like these are never easy, and you have my commitment that we are constantly looking for ways to reduce the need for job eliminations."

Last year, Microsoft carried out multiple rounds of layoffs, which included a single cut of 9,000 jobs.

Xbox division to lay off 3,200 employees

The Xbox division will lay off 3,200 employees through fiscal year 2027. Of these, 1,600 roles will be eliminated on Monday itself.

The other 1,600 departures are in addition to the 4,800 employees leaving immediately.

"I recognize that a year-long restructuring creates additional challenges. Unfortunately, it is not possible to make all the necessary changes in a single day," Xbox CEO Asha Sharma wrote in an email to her team.