Microsoft cuts 4,800 jobs as Xbox sheds 3,200 and spins off 4 studios
What's new: Xbox plans another 1,600 departures over the next year, and Microsoft shares slipped 1% even as the Nasdaq rose.
Microsoft cut 4,800 jobs on Monday, or about 2.1% of its workforce, and said its Xbox division will eliminate 3,200 roles as part of a broad overhaul. Xbox is cutting 1,600 jobs immediately, with another 1,600 departures planned through fiscal 2027, according to a note from Xbox CEO Asha Sharma. The gaming unit is also separating from four development studios: Compulsion Games, Double Fine Productions, Ninja Theory and Undead Labs. Sharma wrote that Xbox had been operating at far lower margins than comparable businesses and needed to reset around bigger projects. Microsoft Chief People Officer Amy Coleman tied the wider cuts to changing customer demand and shifts in how technology is built and used.