Microsoft has announced another round of job cuts, affecting thousands of employees as the technology giant restructures its gaming business and reviews operations across the company.
The company is cutting around 4,800 jobs, representing about 2.1% of its global workforce, according to reports. The layoffs are expected to impact several divisions, including the Xbox gaming unit, as Microsoft looks to streamline costs and improve efficiency.
The latest reductions come as Microsoft continues to reshape its gaming strategy following its major acquisition of Activision Blizzard and efforts to expand its gaming ecosystem beyond traditional consoles. The company has been reassessing its studio portfolio, with some game development teams facing closures, changes or possible spin-offs.
Microsoft’s Xbox division has undergone significant changes in recent months as the company focuses on cloud gaming, subscriptions and making games available across multiple platforms. The restructuring reflects a broader shift in the gaming industry, where companies are prioritising profitability, fewer large-scale projects and more sustainable development models.
Employees affected by the cuts are expected to receive support during the transition, while Microsoft said the decisions were taken to align resources with long-term business priorities.
The layoffs follow similar workforce reductions across the technology sector as companies continue to adjust after years of rapid expansion. Rising development costs, changing consumer behaviour and increased competition in gaming have pushed major firms to reassess spending.
For Xbox, the changes come at a crucial time as Microsoft competes with rivals in the console, cloud and digital gaming markets. The company has invested heavily in building a wider gaming ecosystem, but the industry slowdown has led publishers to become more selective about new projects.
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