Microsoft to cut 4,800 is the latest big news from the tech industry. Microsoft has announced that it will cut about 4,800 jobs, equal to around 2.1% of its global workforce. Most of the job cuts will happen in the Xbox gaming division. The company says the move is part of its plan to improve efficiency while spending more on artificial intelligence (AI).
The biggest impact will be on the Xbox business. Around 3,200 jobs will be reduced during the current financial year, with about 1,600 roles ending immediately. Microsoft also said that four Xbox studios will move to new management. The company believes these changes will help improve business performance.
Microsoft to cut 4,800 jobs comes as the company continues to invest heavily in AI infrastructure and cloud computing. Microsoft expects to spend about $190 billion in 2026, mainly on data centers that support AI services. At the same time, higher costs and weaker Xbox demand have increased pressure on the business.
The company’s commercial division will also be affected. Earlier this year, Microsoft offered voluntary buyouts to about 9,000 U.S. employees. Company leaders said these changes are part of regular business planning and restructuring.
Other major technology companies, including Amazon and Meta, have also announced layoffs this year as they increase AI investments. Microsoft says AI growth is helping its Azure cloud business, but rising costs have reduced cash flow.
