Microsoft will carry out layoffs affecting around 4,800 employees, or about 2.1% of its global workforce, as the company shifts resources toward its main business priorities.
The layoffs will mostly affect its Commercial and Xbox organisations, according to an internal note shared by Amy Coleman, the company’s EVP and Chief People Officer.
Coleman said the job cuts are part of Microsoft’s wider effort to adjust its workforce, investments and operations as customer needs and technology use continue to change.
The company noted that the roles being eliminated are not being directly replaced by AI, though the technology is changing how work is done across the business.
Microsoft will continue investing in employee training, including AI-related skills.
Over the past year, Microsoft has redeployed more than 4,000 employees into new roles, including 500 this month.
More than 30% of eligible employees also took part in a recent voluntary retirement programme.
Microsoft will also transition four of its gaming studios to new management, with the aim of preserving their intellectual property and ongoing projects.
Affected employees will receive financial support and other resources to help with their next steps.
Coleman added that more changes are expected as other parts of Microsoft adjust to the company’s new priorities.
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