Microsoft has announced plans to cut around 4,800 jobs as part of what it describes as a "significant restructure" across the business, with its Xbox gaming division among the hardest hit. The layoffs form part of a broader effort to streamline operations, reduce costs and refocus investment on key growth areas, including artificial intelligence and cloud computing. Several gaming projects are also expected to be scaled back or cancelled as the company reshapes its entertainment strategy.

The restructuring has sparked concern among employees and the wider gaming community, with industry analysts suggesting the changes reflect increasing pressure to improve profitability following Microsoft's major investments in gaming. Despite the cuts, the company says it remains committed to Xbox and plans to continue developing new hardware, games and subscription services. The move marks one of Microsoft's largest workforce reductions in recent years and highlights the ongoing transformation taking place across the global technology sector.