Microsoft is laying off 4,800 employees, which is about 2.1% of its global workforce, with a significant number of these cuts affecting its Xbox division. The company announced that 1,600 Xbox workers are being let go as part of a larger reorganization to address increased competition from Sony’s PlayStation and Nintendo’s Switch. Xbox CEO Asha Sharma highlighted that the gaming business is struggling with low profit margins and a “hardware crisis” due to rising costs for console components. Another 1,600 job cuts are expected throughout the fiscal year. Additionally, Microsoft is spinning off four video game development studios. These layoffs are part of broader changes at Microsoft, which previously offered voluntary buyouts to employees. The company clarified that the eliminated roles are not being replaced by artificial intelligence.
QUESTION: How might the changes in the gaming industry, like those at Xbox, influence the future of video games and technology?
Microsoft cuts 4,800 jobs, including many at Xbox in a ‘reset’ of its gaming division
