Microsoft layoffs: Thousands from Xbox and other teams may lose their jobs
Follow UsMicrosoft is reportedly planning a fresh round of layoffs as early as next week.
Thousands of employees are expected to be affected across different teams.
The layoffs could impact the Xbox gaming division, along with sales and consulting teams.
Microsoft is reportedly planning a fresh round of layoffs. The company is likely to announce the job cuts as early as next week, but the timeline may still change. Thousands of employees are expected to be affected across different teams, reports Business Insider, citing people familiar with the matter. The layoffs could impact the Xbox gaming division, along with sales and consulting teams. The move is said to be part of Microsoft’s efforts to reduce costs while the company is investing heavily in AI.
SurveyThis round of layoffs is expected to be smaller than last year’s. The company has around 220,000 employees. The report suggests that less than 2.5 per cent of the workforce will be affected. Some employees who lose their current jobs may be offered other roles within Microsoft.
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Microsoft has already reduced its workforce several times over the past year. It cut around 6,000 jobs in May last year. Another 9,000 employees lost their jobs in July. That was nearly 4 per cent of the company’s workforce.
Earlier this year, Microsoft also introduced a voluntary retirement programme in the US. The offer was available to eligible employees who met the required age and service conditions. Around 9,000 employees qualified for the programme. About one-third accepted the offer. Reports say this helped Microsoft reduce the number of layoffs this year as compared to last year.
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Job cuts at Xbox have also been expected for some time. Earlier, Xbox gaming chief Asha Sharma told employees that the business needed a “reset.” Well, Microsoft is not the only tech company that is cutting its workforce while investing in AI. Many tech firms are making similar decisions.
The latest report also aligns with last month’s Bloomberg report, which claimed that Microsoft is planning to cut jobs at its Xbox gaming division after Microsoft’s fiscal year ends on June 30. Xbox has faced many challenges in recent years. Sales of Xbox consoles have reportedly fallen, Game Pass growth has slowed and the company has struggled to consistently deliver hit games. Microsoft even closed studios, canceled projects and increased prices over the past two years.
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