Global tech giant Microsoft has once again announced major restructuring measures, cutting around 4,800 jobs, which amounts to 2.1% of its total workforce. This decision comes in response to mounting financial pressure resulting from the company's ambition to integrate artificial intelligence (AI) infrastructure across all its business lines.
This wave of layoffs comes during a difficult period for Microsoft. The company's stock dropped by up to 23% in the first half of 2026, its worst performance in four years. Massive expenditures on data center construction and AI development—projected to reach US$ 190 billion this year—have forced the company to implement strict efficiency measures to keep cash flow stable.
Beyond general operational efficiency, the Xbox gaming division is also a key focus of this restructuring agenda. Asha Sharma, head of the gaming division, noted that the business requires urgent recovery measures. Given a five-year trend of declining revenues, Microsoft is currently evaluating various strategic options for the Xbox unit, including a potential major restructuring or spin-off.
Microsoft's moves reflect a broader trend in the tech industry, where other giants like Amazon and Meta have also been forced to implement similar policies. Amid an accelerating technological transition, major corporations face market pressure to demonstrate tangible returns on their massive AI investments while curbing operational costs to maintain value for investors.
