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Microsoft to cut thousands of jobs, Xbox to be hit hard
DW.com • • general
Key Points:
- Microsoft plans to cut approximately 4,800 jobs, with around 3,200 cuts focused on its Xbox gaming division as part of a major overhaul aimed at reducing costs.
- The job cuts will not be replaced by AI, according to Microsoft executive Amy Coleman, who emphasized the need for the company to adapt to changing industry conditions.
- Xbox CEO Asha Sharma described the division's business as "not healthy" and aims to return it to growth by 2027, warning against complacency in the competitive gaming market.
- Following the acquisition of Activision Blizzard in 2024, Xbox has undergone multiple rounds of layoffs and will raise console prices due to increased component costs driven by AI advancements, aligning with competitors Sony and Nintendo.
