The move will affect the company's gaming division, which has been facing the outcome of a "not healthy" business model. The jobs cut will not be replaced by AI, Microsoft's VP said.

Primarily impacts Xbox, but cloud workers also hit

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

Microsoft announced plans to lay off 4,800 employees on Monday, confirming Business Insider's earlier report.

Microsoft eliminated approximately 2.1% of its global workforce