Microsoft cuts 4,800 jobs, about 2% globally, revamps salesforce and launches massive Xbox overhaul

Microsoft plans to cut 4,800 jobs and execute what its new gaming CEO calls the biggest Xbox restructuring in company history, alongside changes to its sales and consulting division. The moves come amid record AI spending and a ~30% stock slide, signaling near-term pressure despite ongoing investment. Expect sentiment to stay cautious as restructuring costs and execution risk weigh, though the AI-driven spending backdrop may help longer-term repositioning.

Analysis

Microsoft plans to cut 4,800 jobs and execute what its new gaming CEO calls the biggest Xbox restructuring in company history, alongside changes to its sales and consulting division. The moves come amid record AI spending and a ~30% stock slide, signaling near-term pressure despite ongoing investment. Expect sentiment to stay cautious as restructuring costs and execution risk weigh, though the AI-driven spending backdrop may help longer-term repositioning.