Microsoft again lays off up to 9000 employees
Microsoft informs employees about a further wave of redundancies. Jobs at game studios in Europe are also affected.
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Microsoft is cutting more jobs: Up to 9100 employees are to lose their jobs in a new wave of redundancies, the company told the Seattle Times. This is said to be the largest wave of layoffs since 2023. "We are continuing the organizational changes necessary to best position the company and teams for success in a dynamic market," Microsoft told US media.
The 9100 jobs that have now been cut represent 4 percent of the total workforce, reports the Seattle Times. It is still unclear which departments are affected and to what extent. According to Bloomberg, however, the job cuts will definitely affect the tech giant's Xbox division –, i.e. jobs in the gaming sector. For example, 10 percent of employees in the King division, which Microsoft acquired with the Bethesda deal, are to go. The Candy Crush developer operates several branches in Europe. Other ZeniMax offices in Europe are also affected by the job cuts.
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The games magazine Videogameschronicle has published an email in which Microsoft's Xbox boss Phil Spencer informs employees about the wave of redundancies. "In order to position gaming for continued success and focus on strategic growth areas, we will be discontinuing or reducing work in certain areas of the business," writes Spencer.
Accordingly, management levels are to be reduced in order to improve agility and effectiveness. Affected employees will be informed individually by their superiors. "Thank you to everyone who has shaped our culture, our products and our community. We will continue with great appreciation and respect for everyone who has contributed to this journey," writes Spencer.
Fourth wave of Xbox cancellations in a short space of time
In the email, Spencer also emphasizes the success of the Xbox division: there are more players, games and hours of play than ever before. The platform, hardware and games roadmap are also better positioned than ever before. But this success is also built on the difficult decisions made in the past, reports Spencer. "We have to make decisions now in order to be successful in the coming years." The aim is to prioritize the strongest market opportunities.
US media had already held out the prospect of a new wave of Microsoft redundancies over a week ago. It is the fourth wave of layoffs in the Xbox division since last year: at the beginning of 2024, 1900 of around 22,000 Xbox employees were made redundant. In May of this year, Microsoft closed several game studios, before another 650 jobs were lost in the Xbox division in September.
(dahe)