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Microsoft Announces New Wave of Layoffs, Reduces Workforce

Microsoft has announced another round of layoffs, cutting approximately 4,800 jobs, or about 2.1% of its global workforce. The company's Xbox division will be heavily affected, with around 20% of its staff expected to be reduced over the next few years. As part of the restructuring, Microsoft will also separate four of its gaming studios into independent businesses or new ownership. The company says the layoffs are part of a broader business transformation and are not the result of AI replacing employees, although it acknowledges AI is changing how work is done. The announcement comes amid a broader wave of job cuts across the tech industry, with thousands of layoffs reported at major technology companies throughout 2026.