- According to reports, Microsoft prepared for another round of employment cuts
- The next movement could see 6,000 clippings of the company’s games division
- Cortes represent less than 4% of Microsoft’s global staff
Microsoft is reducing 9,000 jobs and most of those who face the ax are used in the game division.
“We continue to implement the necessary organizational changes to better position the company and the teams for success in a dynamic market,” said a Microsoft spokesman (through CNBC).
Employment cuts seek to reduce the layers of managers between individual taxpayers and senior executives, said a person familiar with the matter. CNBC.
Microsoft reveals another round of cuts
Cutting the work seems to be the growing trend for many large companies, with Microsoft reducing just under 1% of its workforce in January 2025.
Other 6,000 workers, mostly programmers, were cut in May and another 300 jobs cut in June.
Phil Spencer, Microsoft Gaming CEO, wrote in a Memorandum on Wednesday: “To position games for lasting success and allow ourselves to focus on strategic growth areas, we will finish or reduce work in certain areas of the business and follow Microsoft’s example to eliminate management layers to increase agility and effectiveness.”
Amazon has also gone through several waves of layoffs this year, with the Andy Jassy CEO repeatedly saying that AI could replace some of its workers.
However, for Microsoft, layoffs have more to do with improving business performance and reducing internal friction.
Intel has also aligned a significant wave of dismissals, and the company seeks to reduce 15-20% of its factory workforce.
Intel already fired 15,000 people in August 2024. But although Intel has been fighting for the decrease in market revenues and performance, Microsoft reported almost $ 26 billion in net income with $ 70 billion in revenues for the quarter of March.
