Microsoft to Lay Off 4,800 Employees as AI Push Reshapes Business; Xbox Faces Biggest Cuts

Microsoft plans to cut about 4,800 jobs, or 2.1% of its global workforce, as it shifts resources toward AI priorities, with Xbox facing roughly 3,200 reductions through FY27. The company says AI systems will not replace the eliminated roles, and affected employees, including around 600 in Washington, will receive financial and career-transition support as part of the restructuring.