Microsoft will cut some 4,800 jobs, including the largest overhaul in its gaming brand Xbox, the company said.
Approximately 3,200 jobs will be cut from the company's gaming operations in the coming fiscal year.
The move is meant to cut costs in the Xbox division, which has been struggling in recent years.
According to Microsoft's Amy Coleman, the company's executive vice president, the jobs that will be cut will not be replaced by AI, despite accepting the role automation has across the company.
"Our business is changing because the world around it is changing," Coleman wrote in a memo to Microsoft employees, adding that companies do not choose whether their industry changes, but they rather "only get to choose whether they change with it."
