Microsoft cuts 4,800 roles as AI shift accelerates

• Microsoft (NASDAQ:MSFT) cut around 4,800 jobs, equal to about 2.1% of its global workforce.
• Layoffs affected Xbox and commercial sales teams as part of a broader restructuring.
• The company said AI is changing how work is done, not directly replacing roles.

Microsoft (NASDAQ:MSFT) cut approximately 4,800 roles, or about 2.1% of its global workforce, as the company restructures operations in response to rapid changes in technology and customer demand.

The layoffs are concentrated in Xbox and commercial sales units, reflecting internal shifts linked to artificial intelligence adoption and changing business priorities.

In a memo attributed to Amy Coleman, Microsoft said, “Our business is changing because the world around it is changing. The way technology is built, deployed, and used is transforming faster than at any point in my time here.”

The memo added that “AI is changing how work gets done,” while stressing that eliminated roles are not being directly replaced by AI systems.

The company also said engineering teams and gaming studios will be reorganized, with some studios transitioning under new management structures.

Microsoft said the restructuring is intended to align resources with long-term product strategy and evolving customer needs across cloud, AI, and gaming.