On Tuesday, American tech conglomerate Microsoft announced it plans to lay off around 3% of its workforce worldwide.
According to a CNBC report, the coming cuts will impact workers from all teams, levels, and locations, but management reduction will be a primary goal.
The brand’s most recent figures show they employ around 228,000 workers worldwide, though more than half of those are based in the United States. Based on Microsoft’s estimates, a 3% workforce reduction would result in nearly 7,000 jobs lost.
Layoffs are also expected at Microsoft-led career networking platform LinkedIn.
The just-announced cuts aren’t the first for the Washington state-based company in recent years. Microsoft conducted performance-based cuts earlier this year, though the new 3% reduction is the brand’s most significant workforce reduction since it booted around 10,000 employees in 2023 following industry-wide pandemic-wrought financial challenges.
The impact of these cuts on Microsoft Gaming remains to be seen, but the brand’s gaming division is no stranger to cuts. The brand has eliminated more than 2,500 gaming team members since its controversial and costly acquisition of Activision Blizzard in 2023. In May 2024, Microsoft shuttered numerous game studios, including the teams behind Hi-Fi Rush and Redfall.
Despite increasingly frequent and significant workforce reductions, Microsoft reported a quarterly net income of nearly $26 billion, an 18% year-on-year increase that surpassed expert expectations.
At Microsoft’s FY25 Third Quarter Earnings Conference Call, brand chairman and Chief Executive Officer Amy Hood explained that Microsoft will “continue to focus on building high-performing teams and increasing our agility by reducing layers with fewer managers.”
One day after the call, held April 30, Microsoft formally announced it would raise prices on Xbox consoles and games.
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A lifelong gamer raised on classic titles like Crash Bandicoot, Spyro, and Croc, Stephanie brings her expertise of gaming and pop culture to deliver unique, refreshing views on the world of video games, complete with references to absurd and obscure media.
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