- Microsoft allegedly set to another round of job cuts
- Next movement could see 6,000 cut from the company’s gaming department
- The cuts make up less than 4% of Microsoft’s global number of staff
Microsoft cuts 9,000 jobs, with most of those facing the ax employed in the gaming department.
“We continue to implement organizational changes needed to best place the company and the teams for success in a dynamic marketplace,” said a Microsoft spokesman (via CNBC).
The job cutters seek to reduce the layers of leaders standing between individual contributors and top executives, a person who is familiar with the case CNBC.
Microsoft reveals another round with cuts
Cutting jobs seems to be the growing trend for many large companies, with Microsoft cutting almost 1% of its workforce in January 2025.
Another 6,000 workers, mostly programmers, were cut in May and another 300 jobs that were cut in June.
Phil Spencer, Microsoft CEO of Gaming, wrote in a Wednesday Memo: “To place gaming for sustained success and allow us to focus on strategic growth areas, we will end or reduce work in certain areas of the company and follow Microsoft’s lead in removing layers of leadership to increase agility and efficiency.”
Amazon has also reviewed several waves of layoffs this year, with CEO Andy Jassy repeatedly saying AI could replace some of its workers.
For Microsoft, however, the permits have more to do with improving business results and reducing internal friction.
Intel has also created a significant wave of redundancies, with the company that wants to cut 15-20% of its factory working power.
Intel already set aside 15,000 people in August 2024. But while Intel has been struggling with falling revenue and market performance, Microsoft reported almost $ 26 billion in net revenue of $ 70 billion in revenue for March quarter.
