Microsoft announced on Monday (6th) that it will lay off 4,800 employees, accounting for approximately 2.1% of the company's global workforce. Among them, the gaming division Xbox will cumulatively cut 3,200 positions, with half of the layoffs occurring on Monday, and further reductions in other positions over the next few months. Additionally, Xbox will divest four game development studios and initiate the sale process for a fifth studio.

Amy Coleman, Microsoft's Chief Human Resources Officer, stated in a letter that the way technology is built, deployed, and used is changing at an unprecedented pace since she took office. She emphasized that the positions eliminated today will not be replaced by artificial intelligence (AI), "At the same time, it is undeniable that AI is indeed changing the way work is done."

Coleman also noted that the company is still in the early stages of this transformation process, and more adjustments will be needed in the future; other Microsoft businesses will also require similar reforms.

Sources indicate that the number of layoffs represents about 20% of Xbox's total workforce. Asha Sharma, CEO of Xbox, stated that the division's business is not healthy, with Xbox's profit margins only one-tenth to one-third of comparable businesses, "We must reshape Xbox."

Asha Sharma further mentioned that the goal of this restructuring is to streamline operations and reinvest resources into larger projects, acknowledging that the year-long restructuring will bring additional challenges, emphasizing that Xbox will return to growth by 2027