Microsoft is cutting about 2.1% of its workforce, or roughly 4,800 jobs, as the Windows maker restructures parts of its commercial and Xbox businesses. This move is part of a broader effort to realign resources and operating structures with the company’s priorities.

AI-Driven Restructuring

The company’s Chief People Officer, Amy Coleman, stated that AI is changing how work gets done by automating some routine tasks. However, she emphasized that the layoffs were not a direct result of AI replacing jobs, but rather a strategic decision to realign the company’s resources.

Microsoft’s shares were down 1.5% in early trading following the announcement. The company has been managing its workforce to pay for its AI investments, which have powered growth at its Azure cloud-computing business.

The gaming division, led by Asha Sharma, is also undergoing a restructuring, with potential options including a spinoff or restructuring as a wholly owned subsidiary. The company has spent over $20 billion on ongoing investments in its content, platform, and hardware subsidy, but its annual revenue has declined nearly half a billion during that time.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.