Microsoft Xbox cuts 4,800 jobs, offers up to 39 weeks severance

Microsoft announced a global reduction of about 4,800 positions, roughly 2 % of its workforce, with the bulk of cuts hitting the Xbox gaming division and Commercial Sales units. The Xbox restructuring will trim about 20 % of the division’s staff – around 3,200 jobs – and may involve the sale or spin‑off of four game studios.

In the United States, laid‑off employees will receive a minimum of 60 days of base pay, with tenure‑based severance that can rise to 39 weeks of salary, continued stock vesting for six to twelve months, six months of paid health insurance and an additional 12 months of optional COBRA coverage. Chief People Officer Amy Coleman wrote, “AI is changing how work gets done.”

New Xbox chief Asha Sharma, who took over from Phil Spencer, said the reset will simplify the organization, reduce management layers, and focus on core franchises such as Halo, Minecraft, and Fallout. The strategy also shifts toward more exclusive single‑player titles for Xbox while keeping major multiplayer games multi‑platform. Microsoft is simultaneously expanding its own AI models across products like Excel and Teams.