technology · 3 outlets · 3 linked reports
Microsoft Cuts 4,800 Jobs in AI-Era 'Reset,' Gutting Xbox
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Summary
- Microsoft is eliminating about 4,800 roles — roughly 2.1% of its global workforce — in its latest cost-cutting move of the AI era.
- Xbox is hit hardest: around 1,600 gaming jobs go now, with another ~1,600 expected across fiscal 2027, and four previously acquired studios being spun off.
- Xbox chief Asha Sharma told staff the business is 'not healthy,' operating at margins '3–10x lower' than comparable platforms amid a console 'hardware crisis.'
- Analysts framed the cuts as part of a broader wave of AI-driven tech layoffs and a revamp of Microsoft's salesforce.
The question
Microsoft is cutting 4,800 jobs, with Xbox bearing the brunt of an AI-era restructuring.
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