Microsoft lay off 4,800 employees as Xbox gaming division undergoes major restructuring
&imwidth=600&imheight=450&format=webp&quality=medium "Microsoft lay off 4,800 employees as Xbox gaming division undergoes major restructuring")
Representative image. Photograph: (Unsplash)
The move will significantly impact Microsoft's gaming business as nearly 1,600 Xbox employees have already been affected, and Microsoft has highlighted that further job cuts are likely during the ongoing fiscal year.
Microsoft has announced a fresh round of layoffs, affecting nearly 4,800 employees worldwide or around 2.1 per cent of the company's global workforce. The job cuts include a substantial reduction in the Xbox gaming division of the company, which is undertaking a broader restructuring. The latest downsizing comes as the company reshapes its Xbox business strategy in response to growing challenges in the gaming console market.
The move will significantly impact Microsoft's gaming business as nearly 1,600 Xbox employees have already been affected, and Microsoft has highlighted that further job cuts are likely during the ongoing fiscal year. In response to the development, Xbox CEO Asha Sharma, who is in charge of the gaming division, stated that the restructuring is focused on resetting the business.
"Our business today is not healthy," Sharma said in a memo. "We are operating at margins that are 3-10x lower than comparable platform and publishing businesses." She also underscored the increasing pressure on the gaming hardware business.
Xbox job cuts
The Xbox job cuts are part of a broader round of layoffs at Microsoft. Chief People Officer Amy Coleman said the move is aimed at aligning the company's workforce with evolving customer needs, rather than replacing employees with artificial intelligence.
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The latest layoffs follow Microsoft's voluntary buyout programme launched in May, which was offered to about 8,750 employees. Coleman said more than 30 per cent of eligible staff accepted the retirement packages. The fresh round of job cuts comes as Microsoft presses ahead with its ongoing workforce restructuring.
