Microsoft is planning to downsize its global workforce by 4,800 jobs or 2.1%, which is primarily related to a major restructuring of the company's Xbox gaming division, including the shuttering of up to five studios as part of efforts to improve returns.
The Xbox overhaul is likely to impact 3,200 jobs, including 1,600 employees who were laid off on day one. Note that Microsoft has invested billions of dollars in Xbox over the years, including its takeover of Activision Blizzard, but still lags behind Sony's PlayStations and Nintendo. The latest walkout breaks the record for a gaming layoff in 2024 where 1,900 Microsoft employees were affected.
