Microsoft staff are set to face another round of layoffs as the technology giant embarks on a more extensive corporate reorganization. The conclusion of Microsoft’s fiscal year is imminent, occurring in just a few days.
The layoffs will impact thousands of employees, primarily affecting Microsoft’s Xbox and Global Sales divisions. Company executives are indicating that this will be a significant round of job cuts. This marks the fourth round of layoffs within the organization in a mere 18 months, particularly targeting the Xbox and Global Sales and Marketing divisions. Since Microsoft’s acquisition of Activision Blizzard for an astounding $69 billion in 2023, the pressure on Xbox to deliver results has been immense. Following the major acquisition, expectations have soared, with the company needing to generate increased profits from what has been termed its growth engine. The previous layoffs have already had the most significant effect on Xbox. In January of last year, Microsoft terminated 1,900 employees from the gaming division. Subsequently, in September 2024, an additional 650 employees were laid off. The technology giant has also shut down several studios, including Tango Gameworks, renowned for Hi-Fi Rush. Additionally, Arkane Austin, the team responsible for Redfall, was also disbanded.
The sales team also hit
Microsoft’s sales and marketing division, which is among the largest within the company and employs approximately 45,000 individuals, will also experience significant workforce reductions. In the past month alone, the company has already eliminated 6,300 positions in two separate phases.
