Microsoft to cut 4,800 jobs in AI-focused reorganization

Microsoft announced plans to eliminate around 4,800 jobs, representing 2.1% of its global workforce, in a significant restructuring effort. The move is intended to adapt the company's operations and business models to the rapidly evolving technological landscape, with a particular focus on the impact of artificial intelligence (AI).

The company's human resources director, Amy Coleman, stated that the decision stems from the need to "adjust resources, investments, and efforts" in a fast-paced technological environment. The changes in technology development and utilization are occurring faster than ever before, prompting this strategic realignment. The Xbox gaming division is expected to be heavily impacted, with approximately 20% of its workforce slated for layoffs.

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adjust resources, investments, and efforts in a technological environment that is evolving at high speed.

Asha Sharma, CEO of Xbox, communicated in an internal message that about 1,600 layoffs will occur immediately, with an additional 1,600 planned progressively through fiscal year 2027. This restructuring follows previous rounds of layoffs last year, which saw approximately 9,000 positions eliminated. Microsoft's stock saw a 1.51% decline following the announcement, and the company has experienced a nearly 19% drop in value in 2026, with investors scrutinizing the impact of generative AI on its business.

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I recognize that a year-long restructuring creates challenges.