Microsoft has initiated its largest layoff in over two years, affecting around 4% of its workforce—approximately 9,000 employees.
The cuts, announced Wednesday, target multiple divisions, including Xbox and global sales.
“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” Microsoft said in a statement.
Xbox CEO Phil Spencer, in a memo to staff, said the changes would help focus on “strategic growth areas” and improve “agility and effectiveness.”
This marks Microsoft’s second mass layoff in months. In May, it let go of 6,000 workers, followed by 300 more in June. Most affected were roles in software engineering and product management.
Analyst Dan Ives noted the layoffs reflect Microsoft’s pivot to AI and cloud services. “They’re looking to cut costs around Xbox and some of the more legacy areas,” he said.
Microsoft employed 228,000 people as of June 2024.
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