Microsoft cuts 4,800 jobs, cuts Xbox in ‘major restructuring’

Microsoft has announced that it is cutting 4,800 jobs — roughly 2.1% of its workforce — along with Xbox, the latest cutback.

In a memo to employees, Microsoft executive vice president Amy Coleman said the tech giant needs to focus on areas where it can deliver to customers in a “fast-changing industry.”

You’ll see more than 1,600 roles cast on Xbox Instantly.

Asha Sharma, who recently took over as Xbox CEO, said in a memo to employees that “Xbox is embarking on the most significant restructuring in history.”

Another 1,600 jobs will be lost next year, Sharma said in the memo. Shared on X., External.

Four Xbox game development studios – Mandatory Games, Double Good Productions, Ninja Theory and Undead Labs – will also be part of the changes, he said.

“These changes are big, not small, promises for the future of Xbox,” Sharma said.

“History is littered with companies that mistake the inevitability of longevity. We will not be one of them.”

Coleman, meanwhile, pointed out that Microsoft’s announcement of massive cutbacks is changing customer demand.

“Companies don’t choose whether their industry will change, they just choose to be changed by it,” she said.

While the company won’t replace lost roles with AI, “the reality is that AI is changing how work is done,” she said.