<h1>Mass layoffs signal employer workforce reduction to increase agility, affecting Xbox, sales and global teams amid strategic restructuring.</h1> Microsoft is conducting a global workforce reduction affecting Xbox, sales and other divisions as part of organisational changes to increase agility by removing management layers; the cuts are described as under four percent of prior headcount, follow earlier layoffs this reporting period, and are framed as reallocating focus toward AI, cloud and next generation businesses.