Microsoft will lay off 4,800 employees, or about 2% of its workforce, as part of the restructuring of the Xbox division.

Microsoft has announced the availability of 4800 employees, representing approximately 2% of its workforce, in the context of a restructuring of the Xbox division.

According to the Financial Times, the company is facing "the worst hardware crisis in video game history." The layoffs will primarily affect the Xbox team, with 3200 positions eliminated, of which 1600 immediately and 1600 over the course of the year. Xbox CEO Asha Sharma emphasized that the business is not healthy, citing low profit margins and weak demand for hardware. Microsoft has heavily invested in game studios, but these businesses have not grown as expected. The company has decided to let go of four of its game studios, including Activision and Blizzard, in an attempt to improve its financial performance. This move comes just three years after the $75 billion acquisition of Activision Blizzard, intended to strengthen Xbox. Additionally, Microsoft shares have significantly decreased, raising questions about the viability of its spending on AI.