San Francisco– Microsoft is set to cut approximately 9,000 jobs—around 4 percent of its global workforce—in a new round of layoffs this year, with its Gaming division bearing a significant portion of the impact, according to media reports.
The Seattle Times reported that employees in Microsoft’s Xbox division, part of the broader Microsoft Gaming vertical, are facing substantial cuts. In a message to staff, Xbox head Phil Spencer stated the layoffs are part of a broader strategy to streamline operations and focus on long-term growth.
“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” Spencer told employees.
This latest round of layoffs follows a series of workforce reductions earlier this year. In May, Microsoft announced the elimination of more than 6,000 roles, followed by an additional 305 layoffs in early June. In January, the company cut 1,900 jobs from its Activision Blizzard and Xbox teams. Several game studio closures and further job losses occurred in May, and another 1,000 roles were eliminated in June, affecting Microsoft’s HoloLens and Azure cloud teams. Additionally, 650 Xbox employees were laid off in September 2024 as part of a restructuring following Microsoft’s acquisition of Activision Blizzard.
Despite the cuts, Spencer emphasized the strong performance of Microsoft’s gaming platform.
“These changes come at a time when we have more players, more games, and more gaming hours than ever before,” he said. “Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing today is the result of difficult decisions made in the past. Now, we must make tough choices again to ensure long-term success.”
Spencer added that Microsoft will continue investing in areas with the greatest potential, focusing its efforts on delivering high-quality gaming experiences for years to come.
“We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come,” he said. (Source: IANS)
