Microsoft is cutting about 4,800 jobs worldwide, including around 3,200 roles in its Xbox gaming division, as part of a major cost-cutting effort.
The restructuring marks the biggest overhaul in Xbox’s history, with several studios affected as Microsoft focuses on improving profitability while increasing investment in artificial intelligence.
Xbox CEO Asha Sharma said the gaming business was facing challenges and aimed to return to growth by 2027.
The cuts follow ongoing changes at Xbox after Microsoft’s acquisition of Activision Blizzard and come amid wider technology industry adjustments driven by rising AI costs.
