Microsoft announced layoffs affecting 4,800 employees, about 2.1% of its global workforce, as part of a restructuring centered on artificial intelligence. The Xbox division is hit hardest, losing roughly 20% of its gaming workforce through fiscal 2027, with four gaming studios set to be divested or spun off. Chief People Officer Amy Coleman said the changes reflect how fast technology is being built and deployed, and the cuts also extend to Microsoft’s commercial sales organization amid heavy AI infrastructure investment.
