Microsoft has announced it will be laying off around 4,800 employees as part of its ongoing restructuring efforts. The news comes a year after the company cut nearly 9,100 jobs and is set to impact both its Xbox business and commercial sales division.

In an internal memo, Amy Coleman, Microsoft’s chief people officer, attributed the layoffs to the changing tech industry and the need for the company to adapt. She stressed that artificial intelligence (AI) would not be replacing these roles, but acknowledged that AI is fundamentally altering how work gets done within the organisation.

The Xbox department will see a significant hit with around 1,600 employees going, equivalent to about 20% of its workforce. Microsoft also plans to divest four studios and possibly more as part of its strategy to reset its gaming division after years of challenges. Meanwhile, the company is looking at voluntary retirement packages for eligible US workers.

“Decisions like these are never easy,” Coleman stated in her memo. “We will continue exploring similar approaches in the future.”