Microsoft axes 4,800 jobs, including major cuts to Xbox

Source Domain: www.cnn.com

Microsoft announced it is eliminating around 4,800 jobs, representing about 2.1% of its global workforce, with cuts particularly heavy in its Xbox gaming unit.
Executive Amy Coleman cited changing technological and business environments, mentioning AI’s role in transforming how work gets done.
To focus on AI, Microsoft has faced pressure to establish itself as a major player while pouring billions into AI infrastructure and grappling with concerns over returns on these investments.
The layoffs follow earlier rounds of reductions, including an April voluntary retirement offer where 30% of eligible US staff participated and previous cuts totaling around 9,000 workers.
Xbox CEO Asha Sharma announced plans to cut approximately 3,200 jobs from the Xbox division, attributing these cuts to industry challenges like increased competition from independent studios and a hardware crisis leading to higher console prices.
Despite investments in its Game Pass subscription service and acquisitions of video game studios, Xbox has not achieved expected growth; as a result, the company will shut down four studios and implement a more focused investment strategy.

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