https://apnews.com/article/microsoft-layoffs-xbox-f44079957b12370f72e24edebe9fcc6b
1 reply
Fiscal year end, heh....
Microsoft is laying off around 9,100 employees (roughly 4% of its workforce) in its largest layoff since 2023.
Affected divisions include Xbox, sales, and other slower-growth areas.
830 workers in Redmond, WA, received notices on July 2, 2025.
This is Microsoft’s second major layoff in 2025, following a 6,000-person cut in May and another 300 last month.
The company is undergoing organizational restructuring, aiming to flatten management, boost agility, and focus spending on AI and cloud.
Xbox CEO Phil Spencer confirmed cuts are meant to position the gaming division for long-term strategic growth.
Analysts suggest layoffs are tied to Microsoft's shift from legacy sectors to AI, cloud, and next-gen infrastructure, especially after its $75B Activision Blizzard and $7.5B Bethesda acquisitions.
Microsoft's AI focus includes heavy spending on data centers and chips, with AI now generating a significant share of code in software projects.
The company aims to control costs while responding to Wall Street pressure for efficiency.