Microsoft is cutting 4,800 jobs and overhauling its Xbox gaming business in what its new gaming CEO calls the biggest restructuring in Xbox history, while reshaping its sales and consulting division amid record AI spending and a 30% stock slide.

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

Microsoft is axing 4,800 employees, most of them from its Xbox division, as it and the rest of the tech industry seek to adapt to the AI era. The cuts come as the software giant has heavily invested in artificial intelligence after years of pouring cash into gaming.