Microsoft eliminates 4,800 jobs as Xbox division faces a 20% staff reduction, studio spin-offs, and a strategic pivot toward AI efficiency amid 3% margins.

Microsoft has announced it is cutting 4,800 jobs, including many in its Xbox division. This represents about 2.1% of its global workforce.

Xbox will cut about 3,200 jobs and offload five studios, including the UK’s Ninja Theory and France’s Arkane, in its biggest-ever restructure.