Microsoft cuts 4,800 jobs in 'most significant' Xbox restructure
Image: BBC News
One of the world's biggest tech employers is shrinking again — and the Xbox gaming division is taking the heaviest hit.
Microsoft said it cut 4,800 jobs, roughly 2.1% of its workforce, in what executives called a "significant restructure." More than 1,600 roles were immediately axed at Xbox, with a further 1,600 to follow.
Four game studios — Compulsion Games, Double Fine Productions, Ninja Theory and Undead Labs — will be spun off as part of the overhaul. New Xbox chief Asha Sharma told staff it was "beginning the most significant restructure in Xbox history."
The cuts land as the industry braces for AI-driven change. Executive Amy Coleman said Microsoft "would not replace the lost roles with AI" but acknowledged "AI is changing how work gets done." For workers, that distinction may feel thin.
Sharma framed the move as growth, not retreat: "History is full of companies that mistake longevity for inevitability. We will not be one of them."
The layoffs underscore how even giants are reshaping themselves around AI and shifting demand. Gamers will be watching whether beloved studios keep their creative edge under the new structure.