Microsoft's decision to cut 4,800 jobs marks one of the company's biggest restructurings in recent years, with the gaming division Xbox facing the largest share of the reductions. The move affects around two per cent of Microsoft's global workforce and follows another large round of layoffs announced last year, when the company said it would cut fewer than four per cent of its employees, amounting to about 9,000 roles at the time.
This latest restructuring comes as Microsoft continues to reshape its business while investing heavily in artificial intelligence. Although the company insists the eliminated positions are not being replaced by AI, it acknowledged that automation is changing the way work is carried out across the business.