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Microsoft plans significant layoffs in the Xbox division and global sales teams, impacting thousands.
Microsoft Xbox set to cut jobs amid AI-driven restructuring.
Microsoft Xbox Division Layoffs: Microsoft is set to initiate another significant wave of job cuts next week, with the Xbox division and global sales teams being primarily affected. According to Bloomberg, these cuts will impact thousands of employees and are part of a broader corporate reorganisation aligned with Microsoft’s fiscal year-end on 30 June.
Microsoft is reportedly planning to cut thousands of jobs, primarily in the sales division, soon, as per Bloomberg. This follows previous layoffs of 6,000 employees as part of a push for artificial intelligence.
This marks the fourth major layoff within the Xbox division in just 18 months. Internally, managers are preparing for what they describe as a “substantial” reduction in workforce.
Previous Layoffs
Earlier cost-cutting measures have already been extensive. In January 2024, Microsoft laid off 1,900 employees in the gaming division. Another 650 were let go in September, leading to the closure of studios such as Tango Gameworks, known for Hi-Fi Rush, and Arkane Austin, the team behind Redfall.
Xbox Scrutinised Post-Activision Deal
Once a growth driver, Xbox is now under increased scrutiny. Following Microsoft’s $69 billion acquisition of Activision Blizzard in 2023, expectations have soared, and the pressure to deliver profits has intensified. This acquisition, completed on October 13, 2023, brought popular franchises like Call of Duty, Overwatch, and Diablo under Microsoft’s umbrella, significantly expanding its gaming portfolio. The deal, which faced regulatory challenges from the UK’s CMA and the US FTC, ultimately received approval.
From Google to Amazon, major tech companies have been reducing their workforce, driven by an increased reliance on AI, cost-cutting, and efficiency improvements.
Microsoft has been prioritising AI to maintain its leadership in the rapidly evolving tech landscape. The company is heavily investing in data centres and AI research to meet the growing demand for AI tools and services.
The report also highlighted that Microsoft has allocated a capital expenditure of around Rs 6.6 lakh crore ($80 billion) for the current financial year. A significant portion of this budget will go towards expanding data centre infrastructure to alleviate the strain on existing facilities that support AI services.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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