The tech giant cuts 2.1% of its workforce as it restructures gaming operations following heavy investment and competitive pressures.
Microsoft will eliminate 4,800 roles, or 2.1% of its global workforce, as part of a restructuring of its Xbox gaming division. The move includes 3,200 job cuts, with 1,600 employees laid off immediately, and the divestment of up to five studios to refocus strategy and improve returns.
The company has invested tens of billions in Xbox, including the $69 billion acquisition of Activision Blizzard, but has struggled to close the gap with Sony’s PlayStation and Nintendo. Microsoft is shifting toward multi-platform game distribution rather than relying on console-exclusive titles to drive hardware sales.
The restructuring involves spinning off studios like Ninja Theory and Undead Labs, while others, such as Compulsion Games and Double Fine Productions, will become independent. Arkane Studios is consulting with its workers union in France regarding potential changes.