Microsoft cuts 4,800 jobs as Xbox unit downsizes and spins off four studios
Microsoft is cutting 4,800 jobs across its commercial business and its Xbox gaming group, where revenue has been shrinking. The company also plans to spin off four gaming studios as part of what it calls a significant restructuring. The move deepens a fresh round of layoffs across the technology sector.
Microsoft said it is cutting 4,800 jobs across its commercial business and its Xbox gaming group, describing the move as a significant restructuring. The company said the reductions are concentrated in the gaming unit, where revenue has recently been shrinking.
As part of the plan, Microsoft intends to spin off four gaming studios into separate entities. Analysts read the step as an effort to streamline the company's Xbox hardware and software portfolio after years of expansion.
The decision lands as technology firms face cost pressure from heavy spending on artificial intelligence. Across the sector, several large companies are trimming headcount in traditional divisions while redirecting resources toward AI infrastructure and products.
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