Microsoft Cutting 4,800 Jobs…Focus on Gaming Division

Microsoft has carried out a large-scale restructuring to cut 4,800 jobs. This workforce reduction, representing approximately 2.1% of its global staff, is focused mainly on the gaming sector, including Xbox. The measure was implemented to improve the performance of the gaming division, which has failed to close the gap since last year's acquisition of Activision Blizzard.

Xbox head Asha Sharma cited lower profit margins compared to industry competitors as a reason for operational failure, stating that to increase efficiency, a Chief Operating Officer (COO) position would be created and the reporting structure would be drastically reduced from 3-5 tiers.

Chief People Officer (CPO) Amy Coleman stated that while this decision does not involve replacing personnel with artificial intelligence (AI), it is clear that AI is changing the way we work.