Microsoft will cut 4,800 jobs, or about 2.1% of its global workforce, as part of a cost-cutting drive and restructuring of its Xbox gaming division.
The layoffs follow the company’s first-ever voluntary retirement programme, introduced in April.
In an internal message to employees, Chief People Officer Amy Coleman said rapid advances in technology were reshaping the company’s operations and driving organisational changes.
The Xbox division will account for most of the job reductions, with 3,200 positions to be eliminated by fiscal year 2027, including 1,600 announced on Monday. According to the company, the cuts represent around 20% of the Xbox workforce.
Xbox CEO Asha Sharma said the restructuring is intended to position the business for growth by 2027, while acknowledging the transition would be challenging for employees.