Microsoft Lays Off 4,800 Employees in Major Restructuring for AI Era
Tech giant announces a 2.1% workforce reduction, heavily impacting sales and Xbox gaming divisions.
Microsoft has announced another round of layoffs, cutting 4,800 positions, or 2.1% of its global workforce, effective immediately. This decision is part of cost-cutting efforts and a restructuring to align with the rapidly growing AI era. The majority of affected employees are in commercial sales and the Xbox gaming division. Xbox plans to reduce a total of 3,200 employees by fiscal year 2027, with 1,600 positions already cut in this round. Additionally, four gaming studios have spun off to operate independently or changed ownership. Amy Coleman, Microsoft's Chief People Officer, commented on the situation: "The way technology is built, adopted, and used is changing faster than any time I’ve been here." This round of layoffs follows over 15,000 job cuts last year, which was the company's largest reduction in over a decade.
The restructuring of a tech giant like Microsoft reflects the immense pressure to adapt to the AI era, potentially impacting the direction of the global technology industry and labor market long-term.