Microsoft to Cut 4,800 Jobs, Nearly 2.1% of Global Workforce

Microsoft has announced a fresh round of layoffs that will impact about 4,800 employees globally. According to the company, the move is part of a broader business transformation aimed at aligning people, investments, and resources with Microsoft’s changing priorities in a fast-evolving technology environment.

The company clarified that these layoffs are mainly within its Commercial and Xbox divisions. Microsoft also said it is restructuring its Xbox business for long-term success and will move four gaming studios under new management. The company added that it had already redeployed more than 4,000 employees into new roles over the past year, including 500 this month

Microsoft further stated that the roles being eliminated are not being replaced by AI, though it acknowledged that AI is changing how work gets done and how companies organize teams. It also indicated that more changes may follow in other parts of the business as the transformation continues.