Microsoft’s massive layoffs: Thousands of positions eliminated, with significant impact on Xbox division

Microsoft to Cut Thousands of Jobs

Microsoft is planning to cut around 9,000 jobs, approximately 4 percent of its workforce, in its biggest round of layoffs in years. The layoffs were confirmed by the company on Wednesday, according to a report from The Seattle Times. Employees in Microsoft’s gaming division, particularly those working on Xbox, have been significantly impacted by the layoffs.

Continued Restructuring at Microsoft

Over the past few years, layoffs have become a common occurrence at Microsoft. These latest job cuts come on the heels of a previous round where 6,000 jobs were eliminated less than two months ago. This marks the largest round of layoffs since 2023, when the company cut 10,000 jobs. Despite the layoffs, Microsoft has continued to invest billions of dollars in AI technology, although the returns on these investments have yet to materialize.

The company stated that the layoffs are part of its efforts to position itself for future success in a rapidly changing marketplace. A Microsoft spokesperson told CNBC, “We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace.”