Microsoft is eliminating approximately 4,800 roles (2.1% of its global workforce), primarily within its Commercial and XBOX organizations. Chief People Officer Amy Coleman frames the cuts as a necessary business transformation driven by rapid industry change, not direct AI replacement. Over the past year, Microsoft redeployed more than 4,000 employees into new roles and ran a voluntary retirement program. Four gaming studios will transition to new management. The company commits to upskilling remaining employees, including in AI, and providing financial support to those affected.
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