Abstract:
Microsoft launched a new round of layoffs on Tuesday, involving about 500 employees, mainly in the Xbox gaming department. A small number of positions in other business departments such as cloud and artificial intelligence are also affected. The layoffs follow layoffs in July. Microsoft announced at that time that it would lay off 2.1% of its global workforce, approximately 4,800 people.
After years of expansion and large-scale acquisitions, Microsoft is moving to streamline its gaming business, and this round of layoffs is the latest step in that move. Xbox is moving forward with a plan to cut about 20% of its workforce by the end of this fiscal year, while reorganizing its studios and sorting out a list of retained businesses.
Xbox’s latest “reorganization” actions include the elimination of 268 game-related positions, the reorganization of the Xbox studio group, and the disclosure of the latest progress in the asset divestiture plan.
Xbox executive Matt Buti wrote in this business restructuring memo: "The various initiatives completed since July, including the divestiture of studio assets, have completed approximately three-quarters of the previously announced restructuring tasks."
The document shows that Microsoft launched a severance compensation plan in July: For laid-off American employees, most people can receive up to 39 weeks of basic salary; they also enjoy at least a 60-day notice period, and additional time is calculated based on seniority and years of service.
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