What may seem like just another AI product reflects a fundamental and possibly profitable transformation in the company's revenue model. Despite being a key player in the AI arena, Microsoft (MSFT) shares have remained surprisingly grounded.

Microsoft is cutting about 2.1% of its workforce, or roughly 4,800 jobs, the latest in a wave of tech layoffs as the Windows maker spends heavily on AI infrastructure and ​uses the technology to improve efficiency across its business.

Microsoft stock is under pressure as the company cuts 4,800 jobs, trims Xbox staff, and reshapes its gaming portfolio while AI spending remains in focus.

Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.

The Fallout: New Vegas developer has not escaped Microsoft's Xbox layoffs unscathed.

The Chief Marketing Officer of Microsoft, Takeshi Numoto, purchased a waterfront home in Hunts Point in late June, marking one of the largest real estate transactions of the year in Washington.

Declaring that Microsoft’s gaming arm is “not healthy”, she announced that 3,200 employees would be axed over the next 12 months, and that up to five loss-making studios would be shed. Her diagnosis makes two things clear: first,

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

Microsoft plans to lay off 4,800 staff, impacting sales and Xbox divisions. It's offering severance up to 39 weeks for most laid-off US employees.