microsoft cuts 4,800 jobs as ai reshapes how work gets done

microsoft is laying off 4,800 employees, roughly 2.1% of its staff, with the xbox division and commercial sales teams bearing the brunt of the cuts. in an internal memo, chief people officer amy coleman attributed the restructuring to ai changing the industry, though she emphasized that the eliminated roles are not being directly replaced by ai. the cuts include 1,600 xbox employees today, with a plan to reduce xbox jobs by 20% by the end of the financial year. this move highlights a broader trend where companies pivot towards ai-driven efficiency while simultaneously downsizing traditional divisions. microsoft attempted to mitigate layoffs with a voluntary retirement program, which saw over 30% of eligible us employees participate.