The July Purge: Microsoft Reportedly Plans Thousands of Layoffs as AI Restructuring Hits Xbox, Sales
The cuts are expected to affect less than 2.5% of Microsoft’s workforce as the company shifts spending toward AI infrastructure and platforms.
- Microsoft is preparing to cut thousands of jobs worldwide this July as part of a fresh restructuring tied to its AI strategy, with roles in Xbox and sales expected to be hit.
- The company is pouring more than $100 billion a year into AI infrastructure, forcing cost-cutting across other units as Xbox CEO Asha Sharma noted the gaming business operates at a thin 3% profit margin.
- Xbox annual revenue has fallen nearly $500 million over five years, ending an era of heavy subsidization unlike the 2007 crisis when Microsoft spent more than $1 billion to save the brand.
- Sharma plans to concentrate on major franchises like Halo and Fallout while addressing a "hardware component crisis," leaning on Game Pass priced at about $23 monthly.
- While Microsoft has weighed making Xbox a standalone subsidiary, no immediate changes are imminent as the division continues shedding staff and studios, including Ninja Theory.
16 Articles
16 Articles
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DECRYPTAGE - These announcements are expected to be formalized from Monday. The group's video game activities are at risk, despite tens of billions of dollars spent.
The July Purge: Microsoft Reportedly Plans Thousands of Layoffs as AI Restructuring Hits Xbox, Sales
Microsoft is preparing to cut thousands of jobs worldwide in July as part of a fresh restructuring tied to its AI strategy, with roles in Xbox and sales among those expected to be hit, according to a report. The layoffs, which have not yet been publicly announced by the company, were detailed by sources and are expected to affect less than 2.5 per cent of Microsoft's workforce. For context, July job cuts have become a grimly familiar pattern at …
Microsoft is planning a new cut in its workforce. The technology, led by Satya Nadella, closed June with its worst monthly stock market performance since December 2000, accumulating a devaluation of 19%, the equivalent of a loss of $650 billion (569.7 billion at the current exchange rate) in stock market capitalization, reported the Seattle Times. This cut should affect less than 2.5% of the workforce, which currently stands at 220,000 workers, …
Microsoft’s Cost-Cutting Wave Hits Xbox, Sales Teams as AI Spend Soars
Microsoft stands ready to trim thousands of jobs across its sales, consulting and Xbox units. The move comes as the software maker keeps a tight grip on expenses while directing billions toward artificial intelligence infrastructure. The cuts will touch less than 2.5 percent of the company’s roughly 220,000 employees. That makes the round smaller than last year’s reductions. Business Insider first reported the plans, citing people familiar with …
Microsoft to slash thousands of jobs as AI spending concerns fuel third major layoff round in a year: report
Microsoft is reportedly planning yet another round of layoffs that will slash thousands of roles next week in an effort to cut costs, as concerns about out-of-control AI spending mount.
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