Microsoft has announced that 3% of the entire workforce is being laid off.
As reported by CNBC (via CharlieIntel), Microsoft has decided to lay off a large number of employees to “implement organizational changes necessary to best position the company for success in a dynamic marketplace.” Moreover, the company is working to “reduce the layers of management” with the upcoming cutoff.
The report states that there’s a chance this could be Microsoft’s largest round of layoffs since 2023, when 10,000 employees were removed. Moreover, the number of employees who would lose their jobs in the gaming division wasn’t revealed. However, we do know that thousands of employees will soon be out of a job at Microsoft.
The last round of layoffs at Microsoft was held in January 2025, where the company let go of employees in the sales, security, and gaming teams. However, these cutoffs were performance-based; the latest layoffs are not performance-focused and aim to optimise the organisation.
Microsoft also recently announced that it will increase the base price for Xbox Series consoles, accessories, and games. The company just beat the FTC again, and it’s still all about Activision. What are your thoughts on Microsoft laying off 3% of all employees? Let us know below, and join the discussion in the official Insider Gaming forums.
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