Microsoft Cuts 4,800 Jobs and Restructures Xbox in Major Gaming Division Overhaul

NPR — Business—Microsoft announced sweeping cuts of 4,800 jobs with a heavy concentration in the Xbox gaming division, describing the move as a strategic reset of its approach to the business. The restructure involves closing or scaling back several studios and shifting focus toward cloud gaming and the company's broader AI priorities. CBS reported that more than 3,000 of the eliminated positions are directly within the Xbox unit. The cuts come after Microsoft spent $69 billion acquiring Activision Blizzard in 2023, and analysts said the layoffs reflect disappointing returns from a gaming investment that has not delivered the growth the company projected.

• NPR — Business — Microsoft's Xbox gaming division is being overhauled with sweeping structural and strategic changes.
• CBS News — Technology — More than 3,000 of the 4,800 cuts are directly within the struggling Xbox gaming unit.
• ABC News — Technology — Xbox division described as undergoing a 'reset,' with thousands of jobs eliminated.
• BBC — Technology — Microsoft cuts 4,800 jobs and shrinks Xbox in what it calls a 'significant restructure.'