Microsoft cuts 4,800 jobs as Xbox restructures studios

Microsoft said it will eliminate 4,800 jobs, or about 2.1% of its workforce, as the company continues to reshape operations around artificial intelligence and cost control. The Xbox division will be hit especially hard, with about 3,200 roles affected overall and roughly 1,600 cuts announced immediately. Microsoft also said four gaming studios will be separated from the company, including Compulsion Games and Double Fine Productions, while Ninja Theory and Undead Labs are moving toward new ownership. Microsoft said the changes are part of a wider restructuring as some business lines, including Xbox and parts of the commercial sales operation, have faced slower performance. The company has also used voluntary retirement offers and other measures in recent months as it tries to reduce headcount without relying only on layoffs.