Microsoft has carried out its largest layoff in more than two years, affecting around 9,000 workers globally, as part of a broader organizational restructuring effort. The tech giant cited “dynamic marketplace” pressures and a need to focus on strategic growth areas.
The layoffs, which amount to about 4% of Microsoft’s workforce, have hit the Xbox video game business and other divisions, including sales. A memo from Xbox CEO Phil Spencer emphasized the importance of increasing agility and effectiveness, with the company aiming to position the gaming division for enduring success.
Microsoft has already announced at least three layoff announcements this year, with the latest one surpassing its May cuts of around 6,000 workers. The company’s focus on investing in AI ambitions has also been linked to cost-cutting measures, despite an anticipated $80 billion expense last fiscal year.
Industry analysts believe that Microsoft is trimming costs from slower-growing areas of its business, while focusing on more profitable sectors like AI and cloud computing. This move comes after years of expansion under the gaming console and acquisition strategies.
Source: https://apnews.com/article/microsoft-layoffs-xbox-f44079957b12370f72e24edebe9fcc6b