Microsoft axes 3,200 Xbox jobs as gaming division burns 64 cents on every dollar invested

Thousands of gaming jobs will be shed over the coming fiscal year as Microsoft continues to invest heavily in AI Microsoft said Monday it was eliminating about 4,800 jobs – roughly 2% of its global workforce – in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division. The cuts include the deepest overhaul in Xbox’s history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year, four game studios being spun off or sold, and a fifth entering a review process that could lead to closure, the company said. Continue reading...

Microsoft's strategic shift towards AI over gaming highlights a tech industry trend prioritizing machine learning investments over traditional gaming. The post Microsoft cuts 4,800 jobs as Xbox gets a hard reset, signaling broader tech belt-tightening appeared first on Crypto Briefing.

Microsoft's job cuts highlight a strategic shift towards AI, potentially boosting investor confidence by reallocating resources to high-growth areas. The post Microsoft cuts 4,800 jobs amid Xbox division reset, signaling broader tech industry AI pivot appeared first on Crypto Briefing.

Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.

Gaming unit under pressure from weak margins and the industry’s sharp hardware downturn

The restructuring may lead to increased market competition as spun-off studios could emerge as independent entities with strong IP portfolios. The post Xbox cuts 3,200 jobs and plans to divest five subsidiary studios in major restructuring appeared first on Crypto Briefing.

The layoffs were part of wider cuts at Microsoft, as the company prioritizes spending on artificial intelligence.

STK095 Microsoft | Image: Cath Virginia / The Verge A year after cutting around 9,100 employees, Microsoft is making further layoffs today as it begins its new financial year. The software maker is laying off around 4,800 employees today, approximately 2.1 percent of its workforce. Most of the employees affected by today's cuts are in Microsoft's commercial sales business or the company's Xbox division. In an internal memo to employees, Amy Coleman, executive vice president and Microsoft's chief people officer, blamed the job losses on a changing technology industry and the "need to adjust resources and roles and shift how we operate" to respond to how AI is impacting companies like Microsof … Read the full story at The Verge.