Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.

Microsoft is pressing its Xbox business for growth and stronger profits after 25 years of losses and thin margins.

The Microsoft layoffs are set to affect 4,800 jobs, with 3,200 in Xbox. Four studios are on their way out intact, with a fifth under review.

Microsoft aims for growth by 2027 amid poor performance in 2026, losing 19% of its stock value. The company is cutting 4,800 jobs, including notable Xbox VP Kevin LaChapelle.

Microsoft CEO Satya Nadella says streamers playing Xbox games make more money than the 25-year-old gaming company.

True to form, Xbox’s new strategy is seemingly “you can’t make an omelet without taking a bulldozer to the chicken coop.” The full-scale Xbox “reset,” as described by CEO Asha Sharma, led the company to ax 1,

Sega threw in the towel when it was getting beaten in the game console market. The Xbox is sitting in a similar spot now, and Microsoft has big decisions to make.

The recent layoffs at Microsoft, including deep cuts at Xbox, impacted 4,800 people across the business. One of the staffers let go was Kevin LaChapelle, a 37-year Microsoft veteran who helped bring to market one of the best,