Microsoft (NASDAQ: MSFT) is eliminating approximately 4,800 positions, representing about 2.1% of its global workforce, according to an internal communication shared by Amy Coleman, Executive Vice President and Chief People Officer.

The cuts are concentrated in the company's Commercial and Xbox organizations. In the Commercial business, the reductions follow last week's "Frontier Company" announcement and are intended to embed engineering staff more closely with customers. In Xbox, the restructuring is described as positioning the business for long-term success. Microsoft also said it will transition four gaming studios to operate under new management, with the aim of preserving their intellectual property and ongoing projects.

Coleman stated that the eliminated roles are not being replaced by artificial intelligence, though she acknowledged that AI is changing how work is performed, with some tasks now able to be automated.

Over the past year, Microsoft said it redeployed more than 4,000 employees into new roles, including 500 this month. More than 30% of eligible employees participated in a voluntary retirement program. The company said it will continue exploring similar approaches.

Coleman said affected employees will receive financial support and resources. She noted that additional changes across other parts of the business are expected.