Microsoft has initiated significant layoffs, impacting approximately 4,800 employees, which is 2.1% of its global workforce.

These cuts primarily target the commercial sales and Xbox gaming divisions.

The Chief Human Resources Officer clarified this is a strategic realignment for the evolving tech industry, not merely cost-cutting, and AI is not replacing these positions.

Xbox specifically plans further reductions, totaling 20% or 3,200 additional roles this year, citing declining profitability.

This move signals a broader organizational restructuring and future changes across other divisions.