- Microsoft would have taken another series of job cuts
- The following could see 6,000 coupes from the company game division
- Cups represent less than 4% of Microsoft’s global workforce
Microsoft removes 9,000 jobs with most of those to whom the ax is used in the game division.
“We continue to implement the organizational changes necessary to best position the company and the teams to succeed in a dynamic market,” said a Microsoft spokesperson (via CNBC).
The job cuts seek to reduce the layers of standing managers between individual contributors and senior executives, a person familiar with the case has been told CNBC.
Microsoft reveals another series of cuts
The reduction in jobs seems to be the growing trend for many large companies, Microsoft, reducing just under 1% of its workforce in January 2025.
6,000 other workers, mainly programmers, were cut in May and 300 other jobs were cut in June.
Phil Spencer, CEO of Microsoft gaming, wrote in a note on Wednesday: “To position games for lasting success and allow us to focus on the fields of strategic growth, we will finish or decrease work in certain areas of the company and follow Microsoft’s advance in the suppression of management layers to increase the agency and efficiency.”
Amazon has also traveled several waves of layoffs this year, CEO Andy Jassy said on several occasions that AI could replace some of its workers.
For Microsoft, however, layoffs are more linked to improving business performance and reducing internal friction.
Intel has also aligned a significant wave of layoffs, the company seeking to reduce 15 to 20% of its factory staff.
Intel has already dismissed 15,000 people in August 2024. But while Intel was struggling to reduce income and market performance, Microsoft said nearly $ 26 billion in net revenue over $ 70 billion in revenues for the March quarter.
