Microsoft, the tech giant, has announced a wave of layoffs that will affect over 9,000 employees—representing about four percent of its current workforce. Here’s why the company is making these cuts and which areas will be impacted.
Which areas at Microsoft will face layoffs?
According to the company’s statement, the layoffs will primarily affect the Xbox division, also known as Microsoft Gaming.
Why is Microsoft implementing mass layoffs?
In an internal message, Microsoft informed employees that the recent job cuts are part of a strategy to ensure sustainable growth in its Gaming division. The company explained that the plan is focused on investing in key growth areas, scaling back operations in certain parts of the business, and streamlining management layers to improve efficiency and responsiveness.
ALSO READ McDonald’s launches new McMuffins! What are they like and when will they be available?
One of the most significant cuts is happening at King, the division behind the popular game Candy Crush, which will reduce its workforce by 10%, affecting around 200 employees. Other units, such as Zenimax, have also confirmed layoffs as part of the broader restructuring.
Over the past year, Microsoft has undergone several rounds of job cuts, which have taken a toll on employee morale. In January 2024, the company laid off 1,900 workers from Activision Blizzard and Xbox. In the following months, more game studios were shut down and further positions were eliminated, including 1,000 jobs in the HoloLens and Azure cloud teams in June.
In September, another 650 Xbox employees were let go as part of a wider restructuring connected to Microsoft’s recent acquisition of Activision Blizzard. These moves reflect Microsoft’s ongoing effort to reorganize its gaming and tech operations to stay competitive in a rapidly evolving market.
What will happen to the laid-off Microsoft employees?
In its statement, Microsoft said it will provide affected employees with severance packages that include salary continuation, healthcare coverage, and job placement resources. Additionally, the company mentioned that those who wish to apply for other openings within Microsoft will be given priority in the hiring process.
A Brief History of Microsoft
In the 1970s, technology was still unfamiliar to most people. Typewriters were essential tools in offices, and copying documents required carbon paper or mimeograph machines. Microcomputers were a novelty for just a few. In this environment, two young visionaries—Paul Allen and Bill Gates—firmly believed that personal computing would transform the future. On April 4, 1975, they founded Microsoft in Albuquerque, New Mexico.
ALSO READ 7-Eleven is offering Fourth of July deals! What are they?
Their mission was bold: to place a computer on every desk and in every home. Within a few years, their small company expanded rapidly, opening its first international office in Japan in 1978, and later relocating to Bellevue, Washington. In 1980, Steve Ballmer, a former classmate of Gates at Harvard, joined the company to help manage its growing operations.
In 1981, Microsoft developed MS-DOS, an operating system that introduced a new way of interacting with computers through typed commands. In 1986, the company went public with great success, and shortly after released the first version of Microsoft Office, revolutionizing digital productivity.
The launch of Windows 3.0 in 1990 and Internet Explorer in 1995 marked the beginning of the graphical interface era and web browsing. By 1998, Windows 98 made it easier for homes and businesses to access the internet, helping to popularize cybercafés. The company’s vision of a limitless digital environment continued with the release of Office 2000.
In 2001, Microsoft introduced Windows XP and its first gaming console, Xbox. Four years later, the Xbox 360 solidified its place in the gaming world. Finally, in 2014, Microsoft acquired Minecraft, reaffirming its commitment to innovation, entertainment, and digital creativity.
