Microsoft has announced plans to eliminate approximately 4,800 jobs, representing around 2.1% of its global workforce, as part of a major corporate restructuring aimed at adapting to rapid changes in the technology industry.

In a message to employees, Executive Vice President Amy Coleman said the company is restructuring its operations to focus resources on areas that can better serve customers in an evolving technology landscape.

The gaming division will experience the largest impact, with an immediate reduction of 1,600 positions.

According to Asha Sharma, who recently took over leadership of Microsoft's gaming business, the company is undertaking the most significant restructuring in the division's history. As part of the plan, four game development studios—Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs—will be separated from the division, resulting in an additional 1,600 job cuts.

Sharma emphasized that the restructuring is intended to build a stronger and more sustainable future rather than simply reduce the size of the organization. She noted that companies must continuously adapt instead of relying on past success.

Coleman also clarified that the eliminated positions are not being replaced directly by artificial intelligence (AI). However, she acknowledged that AI is significantly changing the way employees work and how businesses operate.