Microsoft Cuts 4,800 Jobs in Major Restructuring, Including 3,200 from Xbox
Microsoft is eliminating approximately 4,800 jobs, or 2.1% of its workforce, with the Xbox division accounting for 3,200 of the layoffs. The cuts are part of what Xbox CEO Asha Sharma called the most significant restructuring in Xbox history, including studio spinoffs and a vow to return to growth by 2027. The layoffs extend beyond gaming into other commercial business units, and while executives insist the jobs are not being replaced by AI, the cuts coincide with rising H-1B filings and increased scrutiny of Microsoft's AI-driven workforce shift. Some earlier reports had indicated additional Xbox-specific cuts, but the company confirmed the 4,800 total across the organization.
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