Microsoft Cuts 9,000 Jobs in Latest Layoffs, Impacting Xbox, Sales Divisions

Microsoft has announced it will lay off 9,000 employees, roughly 4% of its global workforce, in a sweeping cost-cutting move that will impact its Xbox gaming division, sales teams, and multiple other departments.

This is Microsoft’s second significant layoff wave this year, following thousands of cuts earlier as the company seeks to streamline operations and refocus on growth areas such as cloud computing and artificial intelligence. CEO Satya Nadella stated the layoffs are intended to reduce management layers, increase operational agility, and ensure resources are directed toward “strategic priorities” in a rapidly evolving tech landscape.

The Xbox division, including several game studios acquired through recent deals, will see notable reductions. Employees across gaming development, marketing, and sales have expressed concerns over the layoffs’ potential to affect game release timelines and the overall direction of the division.

Microsoft has invested heavily in AI and cloud infrastructure, and industry analysts view these layoffs as part of a pivot toward automation and advanced technologies while reducing spending in slower-growth areas. The company has highlighted plans to integrate AI tools across its services, noting that AI-driven code generation is already streamlining parts of its operations.

While Microsoft remains one of the world’s most valuable companies, it joins other major tech firms in cutting staff as the industry adjusts to post-pandemic market conditions and shifts in consumer demand. Affected employees will receive severance packages and job placement assistance as part of the transition.

The layoffs have raised concerns among employees about the long-term impacts on morale and the sustainability of rapid shifts toward AI while maintaining quality across products and services.

With input from AP News.