4,800 JOBS: MICROSOFT RESTRUCTURES XBOX AND SPINS OFF FOUR STUDIOS
Microsoft is using a workforce reduction and studio divestitures to tighten costs while it leans further into AI.
🔴 Microsoft says it is eliminating 4,800 jobs, equal to 2.1% of its global workforce, in a cost-cutting move tied to its artificial intelligence strategy.
🔴 Xbox is bearing the largest share of the reductions, with about 20% of staff affected and 1,600 roles cut on July 06, plus another 1,600 planned through fiscal year 2027.
🔴 The restructuring also changes Xbox’s studio footprint: Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs have entered terms to join new ownership.
For investors, the question is how this reset affects both operating discipline and the long-term value of Microsoft’s gaming portfolio.
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