Microsoft plans to cut 4,800 jobs, with Xbox unit bearing biggest reductions
Microsoft announced a reduction of about 4,800 positions, including roughly 3,200 jobs in its Xbox gaming division, as part of a cost-cutting effort. Executives said the cuts will not be offset by artificial-intelligence replacements.
Microsoft said it will eliminate approximately 4,800 positions worldwide, with around 3,200 of those jobs coming from its Xbox gaming operations during the upcoming fiscal year. The reductions are intended to lower costs in a division that has faced declining profitability.
"Our business is changing because the world around it is changing," executive vice president Amy Coleman wrote in an internal memo, adding that companies can only choose how they respond to industry shifts. Xbox chief Asha Sharma described the division's current performance as "not healthy" and warned against assuming that longevity guarantees future success. Sharma, who took over the Xbox brand in February, said the goal is to return the business to growth by 2027. The company also indicated that, like rivals Sony and Nintendo, it may raise console prices in response to higher component costs linked to broader industry trends. Microsoft noted that the eliminated positions will not be replaced by AI, despite broader automation initiatives across the firm.
