Microsoft has announced 4,800 job cuts, around 2% of its global workforce, as it restructures its commercial and Xbox divisions while accelerating investments in artificial intelligence. The overhaul includes 3,200 gaming layoffs, the spin-off or sale of four game studios, and a strategic review of another.
The company says the cuts are not being replaced by AI, but acknowledged that AI is fundamentally changing how work is done. Microsoft plans to spend nearly $190 billion in 2026 to expand its AI infrastructure, joining other tech giants such as Amazon and Meta in balancing heavy AI investments with workforce reductions
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