Microsoft has announced a major restructuring of its gaming division, including the Xbox brand, resulting in approximately 4,800 job cuts. Of these, 3,200 positions will be eliminated from gaming operations in the coming fiscal year.

The move is aimed at reducing costs in the Xbox division, which has faced financial struggles in recent years. Microsoft Vice President Amy Coleman stated that the cut jobs will not be replaced by artificial intelligence, though the company acknowledges automation's role.

Xbox CEO Asha Sharma, appointed in February, described the division's business model as 'not healthy' and pledged to return it to growth by 2027. She emphasized that Xbox would not 'mistake longevity for inevitability.'

Since acquiring Activision Blizzard for $68.7 billion in 2024, Xbox has undergone several rounds of cuts. The company also plans to raise Xbox console prices, following competitors Sony and Nintendo, due to rising component costs driven by AI.

Source: www.dw.com