Microsoft to cut 4,800 jobs, with major impact on Xbox unit

Microsoft said the restructuring is aimed at adapting to a fast-changing technology landscape and improving efficiency.

Xbox cut 1,600 jobs on Monday, July 6 and will axe a further 3,200 jobs throughout the 2027 financial year - this comes after major job cuts at the video game company just two years earlier

Microsoft said on Monday it would cut 4,800 jobs, or about two per cent of its global workforce, including its Xbox gaming business.

Microsoft laid off the architect of Xbox Backwards Compatibility and Xbox Cloud Gaming  Windows CentralMicrosoft cuts 4,800 jobs and shrinks Xbox in 'significant restructure'  BBCUp to 60 jobs could go at Microsoft’s Irish operations  The Irish TimesBehind Xbox’s Big Layoffs, a Streaming Strategy That Failed  Bloomberg.comResetting XBOX  XBOX Wire

Four gaming studios — including Double Fine Productions and Ninja Theory — are going independent as part of the restructuring.

Microsoft will cut about 4,800 jobs from its Xbox gaming division as it restructures the struggling business. The software giant recently put a young Indian executive in charge of Xbox who has no experience with the video game industry. The post Game Over: Microsoft Slashes 4,800 Jobs in Xbox Gaming Division appeared first on Breitbart.

Microsoft is cutting 4,800 jobs, about 2.1% of its global workforce, including a large number of workers at its Xbox video game business. The layoffs included 1,600 Xbox workers, with more to come this year in a broader reorganization designed to “reset” Xbox as it faces heightened competition, the company said Monday. “Our business today is not […]...Keep on reading: Microsoft cuts 4,800 jobs, many from Xbox

“While those businesses have created meaningful value, they did not grow at the pace we expected,” Sharma said.

The move will affect the company's gaming division, which has been facing the outcome of a "not healthy" business model. The jobs cut will not be replaced by AI, Microsoft's VP said.

The cuts include the deepest overhaul in Xbox's history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year.

The cuts will include many workers in the tech giant’s Xbox video game division.

The cuts will include many workers in the tech giant’s Xbox video game division.

Microsoft has announced it is cutting 4800 jobs, including many workers in its Xbox video game division.

Microsoft has announced it is cutting 4800 jobs, including many workers in its Xbox video game division.

As Microsoft continues to invest majorly into AI, it's gaming division, Xbox, is making major cuts to its workforce and selling several of its studios.

Microsoft is eliminating 4,800 positions, representing approximately 2.1% of its global workforce, as the software giant navigates a broader shift toward artificial intelligence (AI) and seeks to stabilize underperforming hardware and gaming segments, CNBC reported Monday (July 6). The restructuring hits the company’s Xbox division particularly hard. According to an internal memo from Xbox CEO […] The post Microsoft Cuts 4,800 Jobs as Xbox Unit Undergoes Major Restructuring appeared first on PYMNTS.com.

Microsoft is cutting 4,800 jobs, about 2.1% of its global workforce, including a large number of workers at its Xbox video game business. The layoffs included 1,600 Xbox workers, with more to come this year in a broader reorganization designed to “reset” Xbox as it faces heightened competition, the company said Monday. “Our business today is not healthy,” said a memo from Xbox CEO Asha Sharma, who took over the gaming division earlier this year. “We are operating at margins that are 3-10x lower than comparable platform and publishing businesses.” Sharma said the industry, in which Xbox competes with Sony’s PlayStation and Nintendo’s Switch, is facing a severe “hardware crisis” as costs soar for console components. She said to expect another 1,600 job cuts over the course of the fiscal year that began last week. The company is also spinning off four video game development studios previously acquired by Microsoft. The Xbox cuts are in addition to broader Microsoft layoffs that the software giant’s chief people officer, Amy Coleman, tied to unspecified changes in customer needs. “I also want to be direct that the roles eliminated today are not being replaced by AI,” Coleman wrote in a blog post. The layoffs followed voluntary buyouts that Microsoft began offering to about 8,750 people in May. More than 30% of eligible workers accepted those voluntary retirement offers, Coleman said Monday.

Microsoft is cutting an additional 3,200 jobs beyond those in the gaming division.

Beyond the layoffs announced Monday, Sharma said Xbox expects another 1,600 job cuts over the course of the fiscal year that began last week.

These cuts are part of broader layoffs at Microsoft, which on Monday said it is eliminating about 4,800 roles

Thousands of gaming jobs will be shed over the coming fiscal year as Microsoft continues to invest heavily in AIMicrosoft said on Monday it was eliminating about 4,800 jobs – roughly 2% of its global workforce – in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division.The cuts include the deepest overhaul in Xbox’s history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year, four game studios being spun off or sold, and a fifth entering a review process that could lead to closure, the company said. Continue reading...

Xbox layoffs: jobs lost at Bethesda, more reported at id Software  GamesIndustry.bizMicrosoft cuts 4,800 jobs and shrinks Xbox in 'significant restructure'  BBCResetting XBOX  XBOX WireMicrosoft’s Xbox to Cut 3,200 Jobs, Divest Five Studios in Major Overhaul  Bloomberg.comXbox to cut 20% of workforce, plans to divest of five studios  Game File | Stephen Totilo

Microsoft said the layoffs are not AI-driven and will also spin off four game development studios as part of the restructuring

About 3,200 gaming jobs are set to be cut at Xbox over the coming fiscal year.

Microsoft announces 4,800 job cuts, including a major overhaul of its Xbox gaming division, as the tech giant focuses on AI investments. Read More: https://punchng.com/microsoft-cuts-4800-jobs-in-xbox-overhaul/

The technology giant is spending massive amounts of money to stay in the artificial intelligence race

Microsoft moves to slash costs as the video game industry faces what the tech giant calls the "most severe hardware crisis in its history."

Microsoft is cutting 4,800 jobs, about 2.1% of its global workforce, including a large number of workers at its Xbox video game business.

Microsoft lays off 4,800 workers, over 30% from Xbox, and sells four studios in a major gaming division reset.

The sweeping layoffs equate to roughly 2.1% of Microsoft's workforce, with 1,600 job losses at Xbox.

Microsoft said Monday it was eliminating about 4,800 jobs — roughly 2 per cent of its global workforce — in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division. The cuts include the deepest overhaul in Xbox’s history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year, four game studios being spun off or sold, and a fifth entering a review process that could lead to closure, the company said. The announcement is the latest in a string of mass layoffs by the technology giant as it spends massive amounts of money to stay in the artificial intelligence race, with companies investing tens of billions of dollars in AI-ready data centres and computing power. “Our business is changing because the world around it is changing,” Amy Coleman, Microsoft’s executive vice president, wrote in a memo to all employees. “Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it.” Coleman said the layoffs fell mostly within Microsoft’s commercial business and Xbox. She said the eliminated roles were “not being replaced by AI,” but acknowledged that automation is reshaping how work is done across the company. On the commercial side, she said the cuts would build on Microsoft’s $2.5 billion push, announced last week, to embed 6,000 engineers inside enterprise clients to accelerate AI adoption by often reluctant customers. At Xbox, CEO Asha Sharma told employees in a separate memo that 1,600 positions were being cut immediately, with the rest to follow through fiscal year 2027. Xbox has been through successive rounds of cuts since Microsoft’s $68.7bn acquisition of Activision Blizzard closed in 2024 after a long review process by regulators over competition concerns. Sharma described Xbox’s business as “not healthy”, with profit margins “3-10 times lower” than rivals. She succeeded longtime Xbox chief Phil Spencer, who retired in February, and has pledged to return the division to growth by 2027. “History is full of companies that mistake longevity for inevitability,” she wrote. “We will not be one of them.” Four studios will leave Xbox as part of the restructuring. Compulsion Games and Double Fine Productions will become independent, retaining their intellectual property and game catalogues. Ninja Theory and Undead Labs have entered into terms to join new owners with funding to continue their current projects. In France, Arkane’s management is beginning a required consultation with its Works Council to review what Sharma called “potential strategic options” — a process that could result in further closures or a sale.

Gaming unit under pressure from weak margins and the industry’s sharp hardware downturn

Microsoft has announced it is cutting 4,800 jobs, including many in its Xbox division

WASHINGTON, United States (AFP) — Microsoft said Monday it was eliminating about 4,800 jobs -- roughly two per cent of its global workforce -- in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division. The cuts include the deepest overhaul in Xbox's history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year, four game studios being spun off or sold, and a fifth entering a review process that could lead to closure, the company said. The announcement is the latest in a string of mass layoffs by the technology giant as it spends massive amounts of money to stay in the artificial intelligence race, with companies investing tens of billions of dollars in AI-ready data centers and computing power. "Our business is changing because the world around it is changing," Amy Coleman, Microsoft's executive vice president, wrote in a memo to all employees. "Companies don't get to choose whether their industry changes; they only get to choose whether they change with it." Coleman said the layoffs fell mostly within Microsoft's commercial business and Xbox. She said the eliminated roles were "not being replaced by AI," but acknowledged that automation is reshaping how work is done across the company. On the commercial side, she said the cuts would build on Microsoft's $2.5 billion push, announced last week, to embed 6,000 engineers inside enterprise clients to accelerate AI adoption by often reluctant customers. At Xbox, CEO Asha Sharma told employees in a separate memo that 1,600 positions were being cut immediately, with the rest to follow through fiscal year 2027. Xbox has been through successive rounds of cuts since Microsoft's $68.7 billion acquisition of Activision Blizzard closed in 2024 after a long review process by regulators over competition concerns. Sharma described Xbox's business as "not healthy," with profit margins "3-10 times lower" than rivals. She succeeded longtime Xbox chief Phil Spencer, who retired in February, and has pledged to return the division to growth by 2027. "History is full of companies that mistake longevity for inevitability," she wrote. "We will not be one of them." Four studios will leave Xbox as part of the restructuring. Compulsion Games and Double Fine Productions will become independent, retaining their intellectual property and game catalogs. Ninja Theory and Undead Labs have entered terms to join new owners with funding to continue their current projects. In France, Arkane's management is beginning a required consultation with its Works Council to review what Sharma called "potential strategic options" -- a process that could result in further closures or a sale.

Xbox spinoff or restructuring reportedly on the table as gaming unit’s margins shrink

Microsoft has revealed 4,800 job losses globally, with the bulk of the pain to be felt at its struggling Xbox gaming unit where a fifth of its workforce is facing the axe.

Xbox CEO Asha Sharma said the division's business "is not healthy" and will cut roughly 20% of its staff through fiscal year 2027

Microsoft is cutting jobs in its commercial business and its Xbox gaming group, where revenue has been shrinking.

Xbox plans 3,200 job cuts, and will drop five acclaimed studios  The Game BusinessMicrosoft cuts 4,800 jobs and shrinks Xbox in 'significant restructure'  BBCThe incredible shrinking Xbox: Five studios, 3,200 employees let go  Ars TechnicaMicrosoft’s Xbox to Cut 3,200 Jobs, Divest Five Studios in Major Overhaul  Bloomberg.comXbox 'reset' as Microsoft cuts 4,800 jobs  Sky News

Microsoft Xbox expansion, including Activision deal, still trails Sony and Nintendo in gaming market

Microsoft is overhauling its Xbox gaming business and divesting up to five studios as it looks to boost returns.