Microsoft to go into layoff mode again, Xbox and Sales hit 4th time in 18 months
Microsoft employees are going to be hit by another wave of layoffs as the tech giant undergoes a broader corporate reorganisation. Microsoft's fiscal year end is just days away. Buzz among Microsoft managers is that this will be a 'substantial' round of reductions. (REUTERS)
According to a report by Bloomberg, the latest layoff will affect thousands of employees, with Microsoft's Xbox and Global Sales divisions mostly taking the heat.
The company managers are buzzing that this will be a 'substantial' round of reductions. This will be the fourth layoff round in the company in just 18 months, especially for Xbox and the Global Sales and Marketing divisions.
Ever since Microsoft acquired Activision Blizzard for a whopping $69 billion in 2023, the pressure on Xbox to perform has been enormous. Expectations have been high since the big acquisition, with the company needing more profits from what was called its growth engine. The previous rounds of layoffs have already impacted Xbox the most.
Microsoft laid off 1,900 employees from the gaming division in January last year. Then, in September 2024, another 650 were let go. The tech giant has also closed several studios, including Tango Gameworks, best known for Hi-Fi Rush. Even Arkane Austin, the team behind Redfall, was also let go.
Microsoft's Xbox division is developing its next-generation console in partnership with AMD, and reports suggest the restructuring is intended to prepare the division for that goal.
According to a report by The Verge, the company is 'restructuring Xbox distribution across central Europe,' with some operations. The sales team also hit
Microsoft's sales and marketing team, one of its largest divisions with around 45,000 staff, will also see heavy reductions in workforce. The company has already slashed 6,300 jobs in two phases in just the last month.
These layoffs are part of a strategy to flatten the company's management structure and cut administrative overhead. Microsoft previously confirmed that it plans to eliminate around 3 per cent of its global workforce of 228,000 employees this year.
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