4,800 Jobs Cut at Microsoft

Microsoft is eliminating 4,800 jobs worldwide, equivalent to about 2.1% of its global workforce, including significant reductions within its Xbox gaming division.

The company said 1,600 positions will be cut at Xbox as part of a restructuring effort aimed at improving profitability amid intensifying competition in the video game industry.

Xbox chief executive Asha Sharma acknowledged that the business faces mounting challenges, with profit margins substantially lower than those of comparable gaming platforms and publishers.

The restructuring comes as Xbox competes with Sony's PlayStation and Nintendo's Switch in a market grappling with rising hardware component costs and weaker profitability across the gaming sector.