California (Web Desk): Technology company Microsoft has announced that it will lay off approximately 4,800 employees worldwide, representing about 2.1 percent of its global workforce. Among the hardest-hit divisions is Xbox.
According to the company, 1,600 employees associated with Xbox have already been laid off, while further job cuts are also expected later this year.
Microsoft said the move is part of its strategy to restructure Xbox's business operations and ensure long-term sustainability.
In a message to employees, Xbox Chief Executive Asha Sharma said the company is currently facing financial and business challenges, and its current profitability is significantly lower than that of other platform and publishing companies in the gaming industry.
She said Xbox's profits are three to ten times lower than those of some competing companies, making changes to the company's business strategy unavoidable.
Asha Sharma also referred to the ongoing hardware crisis in the gaming industry, saying that rising prices of gaming console components have increased operating costs.
She further said that Xbox is facing intense competition from Sony's PlayStation and Nintendo Switch, prompting the company to implement large-scale changes to make its operations more efficient and competitive.