Microsoft Plans Global Layoffs Affecting 2.1% of Workforce, Xbox to Cut 20% of Staff

Microsoft announced it will cut approximately 4,800 jobs worldwide, representing about 2.1% of its global workforce, as part of a broader cost-cutting and efficiency initiative amid rapid technological changes. The most significant impact will be on the Xbox division, which is expected to reduce its staff by around 20%. Amy Coleman, Microsoft’s Chief Human Resources Officer, communicated to employees that the company is undergoing a period of rapid technological transformation not seen since its founding decades ago. She emphasized that while artificial intelligence is not the direct cause of the layoffs nor a replacement for departing employees, it is fundamentally changing work methods and the skills required at Microsoft.

Xbox division CEO Asha Sharma informed employees that the division plans to cut about 3,200 jobs by the end of fiscal year 2027, with 1,600 positions already eliminated. Sharma noted that spreading the layoffs over several years introduces uncertainty but is necessary to complete the organizational changes gradually. She expressed confidence that after the restructuring, Xbox is expected to return to a growth trajectory in 2027.