REDMOND: Microsoft has announced plans to lay off nearly 4,800 employees worldwide, representing about 2.1 percent of its global workforce, as part of a broader restructuring effort.
The Xbox gaming division is among the hardest-hit units.
The company confirmed that around 1,600 Xbox employees have already been laid off, with additional job cuts expected later this year. Microsoft said the layoffs are part of a plan to reorganize the Xbox business and strengthen its long-term operations.
In a message to employees, Xbox Chief Executive Asha Sharma said the business remains healthy but operates on profit margins that are three to ten times lower than those of other platform and publishing companies in the gaming industry.
Sharma also pointed to persistent challenges in the gaming hardware market, saying rising component costs have put pressure on the business. She added that Xbox continues to face intense competition from Sony’s PlayStation and Nintendo’s Switch, prompting the company to make significant changes to its business structure.
The latest layoffs are part of Microsoft’s ongoing efforts to streamline operations and adapt to changing market conditions across its gaming business.
