Microsoft lays off nearly 5,000 employees across Xbox, commercial sales
Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.
Microsoft cut approximately 4,800 roles, representing 2.1% of its global workforce, with Xbox losing 1,600 of those positions. The company's leadership attributed the restructuring to rapid technological changes and shifting customer needs, noting that while roles are not being replaced by AI itself, artificial intelligence is changing how work gets done and enabling task automation. Xbox's CEO stated the gaming division was operating at unhealthy margins and facing severe hardware industry challenges, prompting the most significant restructure in Xbox history. These layoffs are part of a broader pattern in the tech industry where job cuts correlate with increased AI investment, as companies redirect resources toward emerging AI capabilities and deployment.
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Also reported by TechCrunch, Wired AI and Data Center Knowledge