Microsoft to cut 4,800 jobs in Xbox restructuring

Microsoft said it will eliminate 4,800 jobs, or about 2.1% of its global workforce, as it restructures parts of its gaming business and moves to improve returns after years of heavy spending. The company said the changes include 3,200 job cuts in its gaming division, with 1,600 layoffs starting Monday. Microsoft is also shifting its Xbox strategy toward broader game distribution and away from relying mainly on console exclusives to drive hardware sales. As part of the overhaul, Microsoft said it will separate several studios, including Montrealbased Compulsion Games and Double Fine Productions, while other teams such as Ninja Theory and Undead Labs will continue developing upcoming titles independently. The company also said it is reviewing options for Arkane Studios. Microsoft said the restructuring comes as it faces pressure to show stronger returns from its gaming and AI investments. The company’s shares were down on Monday, and it has already made earlier workforce reductions this year.