Microsoft has initiated another round of layoffs, impacting around 500 employees, primarily within the Xbox gaming division, and a few roles in other areas like cloud and AI. This latest move follows prior cuts in July, where the company announced a reduction of about 4,800 employees, representing 2.1% of its workforce.
These layoffs come as part of Microsoft’s ongoing efforts to streamline its gaming operations after years of growth and significant acquisitions. This includes plans for Xbox to reduce its workforce by roughly 20% by the end of its fiscal year, along with reorganizations within its studios.
Details shared by Xbox executive Matt Booty indicate that the company is about three-quarters through its restructuring efforts, which include cutting 268 gaming positions and reorganizing various studio groups. Booty emphasized the importance of supporting affected employees during this challenging time.
Microsoft’s severance package for the laid-off workers includes base pay for up to 39 weeks, determined by seniority and tenure.
