REDMOND (dpa-AFX) - Monday, Microsoft Corporation (MSFT) announced plans to lay off around 4,800 employees, or 2.1% of its global workforce, with primarily affecting the sales division and Xbox gaming business, according to an email to employees sent by Microsoft HR chief Amy Coleman.
The workforce reduction comes as the company looks to cut costs and redirect resources toward investments such as AI infrastructure, helping Microsoft stay competitive and meet customer needs in a rapidly evolving industry.
In another email, Xbox CEO Asha Sharma said that Xbox is cutting 3,200 jobs through fiscal year 2027, with 1,600 roles axed on Monday.
'I recognize that a year-long restructuring creates additional challenges,' Sharma wrote. 'Unfortunately, it is not possible to make all the necessary changes in a single day.'
'We will return to growth in 2027,' Sharma wrote.
Additionally, two of the Xbox studios - Compulsion Games and Double Fine Productions will become independent. Ninja Theory and Undead Labs will be sold. Meanwhile, France-based Arkane Studios will be spun out or sold, as per Bloomberg.
Arkane is 'beginning required consultation with its Works Council to review potential strategic options,' Sharma wrote.
Currently, MSFT is trading at $383.27, down 1.82 percent on the Nasdaq.
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