Microsoft announced, on Monday, that it will cut 4,800 jobs, equivalent to approximately 2.1 percent of its global workforce, as part of restructuring the video game division (Xbox) and abandoning up to five studios, in an attempt to boost revenues after investing heavily in this division over the years.








The restructuring of the gaming division will include cutting 3,200 jobs, including the layoff of 1,600 employees, on Monday.

Despite spending tens of billions of dollars to expand the scope of Xbox, including its acquisition of Activision Blizzard in a huge deal, Microsoft faced difficulties in narrowing the gap with Sony’s PlayStation and Nintendo, which prompted it to reconsider the gaming sector.

The company has increasingly shifted its strategy towards distributing its games across more platforms instead of relying on console exclusives to boost Xbox sales.

The new Xbox president, Asha Sharma, said in a memo addressed to employees that the restructuring of the unit will include abandoning four studios.

The company’s shares fell 1.4 percent today after its shares declined by about 23 percent during the first six months of 2026, which is its worst performance in the first half since 2022.