Microsoft Cuts 4,800 Jobs, Primarily in Sales and Xbox
Microsoft announced plans to eliminate approximately 4,800 jobs, equating to 2.1% of its global workforce, with the cuts largely affecting sales and Xbox divisions. The company also offered voluntary retirement packages.
Microsoft has initiated a new round of workforce reductions, announcing approximately 4,800 job cuts. These eliminations represent 2.1% of the company's global workforce and will primarily impact its sales and Xbox gaming divisions. The news follows a period of substantial investment in AI infrastructure by the tech giant.
Kathleen "Kay" Coleman, Microsoft's HR lead, detailed in an internal memo that the Xbox division alone plans to reduce its headcount by 20% this fiscal year, with 1,600 of those positions included in Monday's announcement. This move occurs as the broader technology sector grapples with economic pressures and invests heavily in artificial intelligence technologies.
This latest round of layoffs follows significant job cuts in the previous year. In May, Microsoft eliminated 6,000 positions, followed by another 9,000 in July, which collectively represented about 4% of its then-current workforce. Prior to these recent reductions, Microsoft employed over 220,000 people globally. Earlier this year, the company also implemented a voluntary retirement plan, which was accepted by approximately one-third of eligible employees, helping to mitigate the necessity for forced redundancies.
These adjustments reflect a wider trend across major tech companies. Firms such as Meta, Amazon, Google, and Coinbase have also recently announced layoffs. Coleman clarified in her memo that the roles being eliminated are not directly being replaced by AI, although AI is reshaping job functions and automating certain tasks. The company aims to reallocate resources and personnel toward strategic growth areas, including AI development.