Microsoft Corp. (NASDAQ:MSFT) stock fell more than 1% on Monday after the company unveiled another round of layoffs, even as technology stocks rallied. The Nasdaq gained 1.83%, and the S&P 500 rose 0.83%.
4,800 Job Cuts
Microsoft will cut about 4,800 jobs, or roughly 2% of its workforce, as it resets its Xbox division. The company described the gaming industry as “facing the most severe hardware crisis in its history.”
The Financial Times reported Monday that about 3,200 cuts will come from Xbox, including 1,600 immediately and another 1,600 over the next year. The remaining layoffs will affect Microsoft’s commercial division.
Microsoft told employees the roles were “not being replaced by AI,” but said “AI is changing how work gets done.”
