Microsoft cuts 9,000 workers in latest layoff round
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The news: Microsoft is laying off just under 4% of its global workforce in the tech giant’s second wave of cuts this year.
The numbers: The cuts will impact around 9,000 Microsoft workers across a stretch of teams, geographies, and tenures, a spokesperson for the company told Bloomberg.
In January Microsoft announced performance-related cuts to just under 1% of its headcount, before slashing over 6,000 roles in May and another 300 in June. In 2023, Microsoft laid off over 10,000 workers.
The context: Part of the job cuts will impact Microsoft’s gaming division, which had about 20,000 employees at the beginning of 2024. The Stockholm-based King division, which makes Candy Crush, is cutting 10% of its workforce (around 200 jobs). US units are expected to be told later on Wednesday how many roles will be affected in each division.
In an email to staff seen by Bloomberg News, Microsoft Gaming CEO Phil Spencer said: “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.”
The layoffs mark the fourth reduction at Xbox in the last 18 months, as the broader gaming division continues to struggle under pressure to boost margins.
