Microsoft is axing about 3,200 jobs across its Xbox video game business as the company moves to restructure the struggling division and pours resources into artificial intelligence.
Microsoft said Monday it was eliminating about 4,800 jobs—roughly 2% of its global workforce—in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division.
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 that AI will replace people at companies.
DA Davidson has reiterated its ‘Buy' rating on Microsoft (NASDAQ: MSFT) and maintained its $550 price target.
Microsoft Corp (NASDAQ:MSFT) shares fell after the software giant said it would cut around 4,800 jobs, or 2.1% of its global workforce, as it restructures to focus on its biggest growth priorities. The stock was down 1.7% at $383.84 in afternoon trading.
This article was written by Doug Nathman, with research by his team at Trefis.
The videogame unit's revenue has fallen and its Netflix-like subscription service is far below expectations.
The layoffs were part of wider cuts at Microsoft, as the company prioritizes spending on artificial intelligence.
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Zacks.com users have recently been watching Microsoft (MSFT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.