More than $150 billion is lined up for data centre development and investment in Australia, but there are questions as to whether the boom will provide benefits beyond a short-term construction boost.<\/p>\n
Amazon and Meta Platforms have also laid off \u200bthousands of employees this year globally.<\/p>\n
In Australia earlier this year, Atlassian announced nearly 500 jobs<\/a> would go from its local workforce, while software firm WiseTech Global said it planned to cut about 2,000 jobs<\/a> as AI replaced manual software coding.<\/p>\n Microsoft’s chief people officer Amy Coleman, however, told employees in a memo that “the roles eliminated today are not being replaced by AI”.<\/p>\n “At the same time, \u200bwhat is true is that AI is changing how work gets done,” she said.Xbox overhaul leads to 1,600 immediate lay-offs<\/p>\n Announcing the global changes, Microsoft said it was overhauling its Xbox gaming business and divesting up to five studios as it looks to \u200cboost returns after years of heavy investment in the division.<\/p>\n The restructuring of its gaming division will involve 3,200 job cuts, including laying off 1,600 employees on Monday (US time).<\/p>\n Microsoft’s Xbox gaming restructure will involve 3,200 job cuts, including 1,600 employees immediately laid off. (Reuters: Claudia Greco\/File photo)<\/p>\n Despite spending tens of billions of dollars to expand Xbox, including its blockbuster acquisition of Activision Blizzard, Microsoft has struggled to narrow the gap with Sony’s PlayStation, and Nintendo, prompting a broader rethink of \u200bthe gaming business.<\/p>\n The company has increasingly shifted its strategy toward distributing its games across more platforms rather than relying on console-exclusive titles \u200bto drive Xbox hardware sales.<\/p>\n The Xbox restructuring will involve divestment of four studios, Xbox’s new head, Asha Sharma, said in \u2060a note to employees.<\/p>\n “South of Midnight producer Compulsion Games and Psychonauts maker Double Fine Productions will become independent studios, while Ninja Theory and Undead Labs will \u200bbe spun off to grow Senua and State of Decay 3,” Sharma said.<\/p>\n The management of Arkane Studios, which developed Dishonored and is currently working on a game based on \u200bMarvel Comics character Blade, has started consultations with its workers’ union in France to review options, she added.<\/p>\n Burgeoning AI spend<\/p>\n “That [targeted cuts] makes the announcement read more like portfolio reallocation and operating discipline than a fresh \u200ccatalyst for \u2060the stock,” said Parth Talsania, CEO of Equisights Research.<\/p>\n “In the near term, the market is likely to reward Microsoft less for headcount reductions and more for evidence that AI monetisation is scaling faster than AI-related costs.”<\/p>\n![\"Xbox](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/c8147ba0ee8f3a7b096541f15779f062.jpeg\")
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