Microsoft Cuts 4,800 Jobs, Major Impact on Xbox Division

IT company Microsoft has announced the reduction of 4,800 employees, which accounts for approximately 2.1 percent of its total workforce. The gaming division, Xbox, is expected to be the most affected by these cuts. Amy Coleman, Microsoft’s Executive Vice President, stated in a message to employees that due to the rapidly changing IT industry, the company needs to focus more on areas that provide greater benefits to customers.

As part of this organizational restructuring, over 1,600 jobs will be immediately cut from the Xbox division. Asha Sharma, who recently became the CEO of Xbox, told employees that the company is initiating the biggest restructuring in Xbox’s history. According to her, an additional 1,600 jobs will be cut over the next year. Furthermore, four Xbox game development studios—Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs—will be separated as part of the company’s restructuring process. CEO Asha Sharma emphasized, “These changes are not intended to make Xbox smaller but to build a bigger future for it.” She added, “History has shown many companies have failed because they believed that surviving in the market long-term guaranteed their future. We will not make that mistake again.”