New Delhi: Microsoft has announced a major organizational restructuring that will result in the layoff of around 4,800 employees globally. The move comes as the company increases its focus on artificial intelligence (AI) investments and implements significant changes within its Xbox gaming division.
According to reports, the layoffs account for nearly 2.1 percent of Microsoft’s total workforce worldwide. The impact is most visible in the Xbox and commercial sales divisions, where a large number of roles are being eliminated as part of the restructuring process.
The company is also reportedly reshaping its gaming business by streamlining operations, reviewing studio structures, and focusing on a more efficient and profitable model. These changes are aimed at improving long-term performance and aligning the division with evolving market demands.
Microsoft has clarified that the layoffs are not solely driven by AI replacing jobs, but are part of a broader effort to reorganize the company in response to changing business priorities, customer needs, and technological transformation.
The move reflects a wider trend in the global tech industry, where major companies are adjusting workforce sizes and operational costs while significantly increasing investments in AI and next-generation technologies.