Microsoft and Xbox layoffs today: Tech giant cuts 4,800 jobs, including 20% of video game staff, amid AI shift

Microsoft is laying off 4,800 employees, representing 2.1% of its global workforce, as part of a cost-cutting restructuring focused on artificial intelligence. The Xbox division faces significant changes, including the removal of 3,200 roles by fiscal 2027. Additionally, Microsoft is divesting gaming studios; Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs will be spun off. These measures aim to boost returns following extensive investments in the gaming sector.