Microsoft is laying off around 9,000 employees, or 4 percent of its global workforce, in another round of job cuts this year. The latest reduction is expected to hit the company’s Xbox division, Microsoft Gaming, particularly hard.
The layoffs are part of a broader effort by the company to restructure its operations and focus on key strategic growth areas.
This is the latest in a series of job reductions by Microsoft over the past year. In January 2024, the company laid off 1,900 employees from its Activision Blizzard and Xbox teams.
In May, several game studios were closed, resulting in further job losses. In June, Microsoft trimmed 1,000 jobs from its HoloLens and Azure cloud units, followed by an additional 305 roles earlier this month.
In September, 650 Xbox employees were let go in connection with the company’s ongoing integration of Activision Blizzard.
According to reports, the current round of layoffs is aimed at improving operational efficiency by reducing layers of management and streamlining teams.
The changes come at a time when Microsoft is seeing growth in its gaming business, with more players, games, and gaming hours being reported. However, the company believes that making difficult decisions now is essential to ensure long-term success.
Microsoft Gaming’s leadership has indicated that work in certain areas will either end or be scaled back as part of this restructuring.
The company plans to concentrate its efforts on areas with the highest potential while protecting segments of the business that are already performing well. The goal is to continue delivering quality gaming experiences and maintain a strong roadmap for future hardware and games.
The layoffs reflect Microsoft’s broader strategy to remain competitive by prioritising resources and focusing on its most promising opportunities. While the company continues to invest in gaming and other technology platforms, it is also taking steps to adapt to changing market conditions and internal business goals.
