Microsoft announces 4,800 job cuts, Xbox and commercial teams affected

Microsoft, the American technology giant, has announced a new round of layoffs, eliminating 4,800 positions globally, or around 2.1% of its total workforce, with immediate effect.

The company explained that a significant portion of these cuts will take place in the Xbox video game division, where 1,600 jobs will be eliminated immediately as part of a broad restructuring following disappointing financial results.

Microsoft also aims to cut another 1,600 positions in Xbox by the end of fiscal year 2027, bringing the total number of jobs affected in this sector to 6,400.

The remaining cuts will include the company’s commercial teams.

In a post on its official blog, Microsoft stressed that these jobs will not be replaced by Artificial Intelligence systems, rejecting claims that automation is the main reason behind this decision.

The company also announced that more than 30% of employees who were eligible to leave during the recent period chose to take advantage of a voluntary retirement scheme.

These latest waves of cuts reflect Microsoft’s efforts to reorganize its operations and reduce costs while continuing to invest in new technologies and in the development of Artificial Intelligence.