Microsoft to cut 4,800 jobs, latest AI-driven tech layoffs

Microsoft is cutting about 2.1% of its workforce, or roughly 4,800 jobs, the latest in a wave of tech layoffs.

Microsoft is cutting about 2.1% of its workforce, or roughly 4,800 jobs, the latest in a wave of tech layoffs as the Windows maker spends heavily on AI infrastructure and ​uses the technology to improve efficiency across its business.

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The cuts will primarily impact Microsoft’s Xbox gaming division, according to an email sent to Xbox employees Monday that the company posted online.

“After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27,” wrote Asha Sharma, the new head of Microsoft’s gaming division. “This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management.”