Microsoft announced on Monday it is laying off 4,800 employees, or 2.1% of its workforce—with more to come—as part of a massive cost-cutting restructuring effort. The layoffs include major cuts from its Xbox division. In a memo to staffers, Xbox CEO Asha Sharma said Microsoft was “resetting Xbox” and would be cutting a total of 3,200 employees, or 20% of that division, throughout fiscal 2027—including spinning off four gaming studios. Compulsion Games and Double Fine Productions will become inde