India, July 6 -- Microsoft-owned Xbox will lay off 3,200 employees-about 20 per cent of its global workforce-over the next year as the gaming division undergoes a major restructuring driven by artificial intelligence investments and slowing business performance.

The move comes as part of Microsoft's broader AI-led workforce reduction, under which the tech giant is cutting around 4,800 jobs across the company. Xbox is expected to bear the biggest impact.

1,600 employees to be laid off immediately

In an email to employees, Xbox Chief Executive Officer Asha Sharma said 1,600 workers will be laid off on Monday, while the remaining job cuts will take place during fiscal year 2027.

"Our business today is not healthy. We are operating at mar...