Microsoft is laying off 4,800 employees

Microsoft said Monday it is immediately eliminating 4,800 jobs, representing 2.1% of its workforce, in the software giant’s latest effort to cut costs in the era of artificial intelligence. Its Xbox division will lose about one-fifth of its staff, including 1,600 jobs on Monday and additional cuts in the coming months.

• Microsoft is laying off 4,800 employees immediately, after carrying out a voluntary retirement program.
• Microsoft’s stock is down 19% this year, trailing its megacap peers.
• Microsoft Corp.’s Xbox plans to eliminate 3,200 jobs, or around 20% of its staff over the next year, as part of a massive reorganization to spur growth in the struggling gaming division.  Four studios will go independent.

While Microsoft recorded accelerating growth in cloud services and LinkedIn in recent quarters, it’s lagging in other areas, such as Windows operating system licenses, Surface devices and the Xbox gaming unit, where revenue has been shrinking.