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Microsoft’s latest layoffs coincide with rising H‑1B filings, intensifying scrutiny of its AI‑driven workforce shift.

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The layoffs were part of wider cuts at Microsoft, as the company prioritizes spending on artificial intelligence.

Microsoft is undertaking a major restructuring of its Xbox gaming business, announcing plans to sell four development studios while reducing its workforce by more than 3,200 employees.

Double Fine and Compulsion Games are going independent, and Microsoft is also selling Ninja Theory and Undead Labs.