BUSINESS

United States tech giant Microsoft cuts 4,800 jobs

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Read, Watch or Listen

Microsoft is cutting about 4,800 jobs, or roughly 2% of its global workforce, as part of a sweeping restructuring aimed at redirecting resources toward artificial intelligence infrastructure. The move, disclosed in internal communications and implemented beginning this week, hits the commercial sales division and the Xbox gaming business hardest. Around 3,200 roles, or about 20% of Xbox’s staff, are slated to be eliminated over the coming fiscal year. Microsoft will also spin off or sell four game studios and is reviewing a fifth for possible closure, while compressing Xbox’s management structure from as many as 14 layers to no more than five.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

This week Microsoft begins major restructuring layoffs
This week 4,800 roles cut companywide
This week commercial sales division sees reductions
This week Xbox and Bethesda staff dismissed
This week 1,600 Xbox employees lose jobs
Coming fiscal year 3,200 gaming roles eliminated
Coming fiscal year Xbox leadership layers consolidated
Coming months four game studios spun off

Why This Matters to You

Microsoft's job cuts could impact your gaming experience. With fewer staff and potential studio closures, new games might take longer to reach you. If you're an Xbox user, keep an eye on any changes to your favorite games or services.

The Bottom Line

This is a big shake-up for Microsoft, especially for the Xbox division. It's all about shifting focus to artificial intelligence. If you're invested in Microsoft or considering it, watch how this plays out. Worth forwarding if you know an Xbox gamer or Microsoft investor.