Microsoft lays off nearly 5,000 employees across Xbox, commercial sales

Microsoft announced layoffs affecting approximately 4,800 employees, primarily impacting its Xbox and commercial sales divisions. The company stated that these changes are part of adapting to evolving technology and customer needs, emphasizing that the job cuts are not directly due to AI replacing roles, though AI is changing work processes. Additionally, Microsoft is restructuring its gaming studios and investing heavily in AI through its Frontier Company business unit.