Microsoft is cutting approximately 4% of its global workforce—around 9,000 jobs—in its latest round of layoffs, according to multiple reports.
The company’s Xbox division, now operating as Microsoft Gaming, is reportedly bearing the brunt of these job cuts.
In a message to employees, Xbox chief Phil Spencer said the decision was aimed at positioning the gaming business for “enduring success” by streamlining operations and focusing 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,” Spencer stated.
This wave of layoffs comes just weeks after Microsoft cut over 6,000 jobs, followed by an additional 305 in early June. The company had also laid off 1,900 Activision Blizzard and Xbox employees in January 2024, closed several game studios in May, and eliminated another 1,000 roles in its HoloLens and Azure divisions in June. In September, 650 more jobs in Xbox were slashed amid the ongoing restructuring tied to Microsoft’s $69 billion acquisition of Activision Blizzard.
Despite the cuts, Spencer emphasized that Xbox is currently thriving, with more players, games, and gaming hours than ever before. “Our platform, hardware, and game roadmap have never looked stronger,” he said. “We must make choices now for continued success in future years… delivering exceptional games and experiences for generations to come.”
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