Microsoft cuts 4,800 jobs, restructures Xbox amid AI cost shift
- Microsoft announced layoffs of ~4,800 employees (2%+ of workforce), with Xbox cutting 3,200 jobs and divesting four game studios.
- Company is shifting from OpenAI/Anthropic models to its own in-house AI to cut costs, even as AI annual run rate surged 123% YoY to $37B.
- MSFT stock is down over 20% YoY, trading near 52-week lows, with multiple class action lawsuits filed alleging securities law violations.