Microsoft is cutting about 4,800 jobs, roughly 2.1% of its workforce, and has already eliminated 1,600 Xbox positions while planning to reduce about 20% of Xbox roles this fiscal year.Xbox CEO Asha Sharma is spinning four studios out of first-party ownership: Compulsion Games and Double Fine Productions return to their founders Tim Schafer and Guillaume Provost, while Ninja Theory and Undead Labs are being sold with funding to keep Senua and State of Decay 3 in development.Amy Coleman says the reductions respond to AI-driven change and cost pressure;
Microsoft has redeployed more than 4,000 employees, offered voluntary retirements for eligible US staff and pledged severance and benefits as its stock has fallen about 19% this year.