Microsoft Lays Off 4,800, Splits Xbox Studios for AI Era

Khaosod•International•20d ago

Reader Briefing

Microsoft restructures by laying off 4,800 employees and spinning off four game studios to adapt to the AI era and financial challenges.

•Microsoft is laying off 4,800 employees, affecting approximately 2.1% of its workforce.
•The Xbox division will see significant reductions, with 3,200 positions impacted.
•Four game studios (Compulsion Games, Double Fine Productions, Ninja Theory, Undead Labs) are being separated from Microsoft.
•The company aims for renewed growth in 2027, driven by strategic adjustments in response to technological shifts and slowing revenue in some divisions.

•Microsoft is implementing a large-scale restructuring, including layoffs.
•Microsoft is laying off 4,800 employees, representing about 2.1% of its total workforce.
•The Xbox division alone will see 3,200 positions affected by the layoffs.
•1,600 Xbox layoffs occurred as part of a recent round on July 6, with another 1,600 planned throughout Microsoft's 2027 fiscal year.
•Microsoft is spinning off four game studios: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs.
•Compulsion Games and Double Fine Productions will become independent companies.
•Ninja Theory and Undead Labs have preliminary agreements to transfer to new owners.
•Microsoft is undertaking these changes to control costs, adapt to the AI era, and address slowing revenue in Windows, Surface, and Xbox divisions.
•Amy Coleman, Microsoft's Chief People Officer, stated that AI is not the direct cause of layoffs but acknowledges technology is changing how work is done.
•Microsoft previously laid off 9,000 employees in the past year and plans further reductions in its commercial business.

Full article content is available on the original source.

Asha Sharma

"We cannot complete all the necessary changes in a single day."

เราไม่สามารถดำเนินการเปลี่ยนแปลงทั้งหมดที่จำเป็นให้เสร็จสิ้นได้ภายในวันเดียว

Amy Coleman

"AI is not the reason employees are being laid off."

AI ไม่ใช่สาเหตุที่ทำให้พนักงานถูกเลิกจ้าง

Microsoftℹ️

A technology company undergoing significant layoffs and restructuring.

A division of Microsoft significantly impacted by layoffs and strategic changes.

Compulsion Gamesℹ️

A game studio being spun off from Microsoft to become an independent company.

Double Fine Productionsℹ️

A game studio being spun off from Microsoft to become an independent company.

Ninja Theoryℹ️

A game studio that has an agreement to transfer to a new owner.

Undead Labsℹ️

A game studio that has an agreement to transfer to a new owner.

Arkane Studiosℹ️

A game studio under ZeniMax Media that is discussing future strategies with its labor council.

ZeniMax Mediaℹ️

A company acquired by Microsoft, under which Arkane Studios operates.

Cloud Services

A business division of Microsoft experiencing revenue growth.

LinkedInℹ️

A business division of Microsoft experiencing revenue growth.

Windowsℹ️

A product division of Microsoft experiencing slowing revenue.

Surfaceℹ️

A product division of Microsoft experiencing slowing revenue.

Asha Sharma(อาชา ชาร์มา)

Chief Executive Officer of Xbox who acknowledged the challenges of the restructuring.

Amy Coleman(เอมี โคลแมน)

Microsoft's Chief People Officer who discussed the impact of AI and past restructuring.