Microsoft is eliminating approximately 4,800 positions, representing about 2% of its global workforce, in a sweeping restructuring of its Xbox gaming division.
The move marks the most extensive overhaul in the history of the struggling unit, as the tech giant seeks to streamline operations and reduce costs amid ongoing challenges in the console market.
The reduction signals a significant shift in strategy for Microsoft's gaming segment, which has faced mounting pressure from competitors and shifting consumer preferences.
By targeting nearly 5,000 roles, the company is aiming to realign its resources toward more profitable areas of its business, including cloud computing and artificial intelligence, while scaling back on underperforming gaming initiatives.
This restructuring comes as Microsoft continues to navigate a complex landscape in the gaming industry, where competition from Sony, Nintendo, and emerging cloud-based platforms has intensified.
The company has previously invested heavily in acquiring studios and expanding its Game Pass subscription service, but the latest cuts suggest a recalibration of those efforts to improve financial efficiency.