Microsoft has eliminated 15,000 employees in the past two months
Microsoft began laying off nearly 9,000 employees on Wednesday in several divisions, including Xbox, sales, and global teams.
The staff reduction follows a previous round of 6,000 job cuts in May, bringing the total to 15,000 layoffs in just two months.
Xbox CEO Phil Spencer told employees that the move aims to help the gaming division refocus and align with Microsoft’s broader strategy to streamline management and increase agility.
The company confirmed this latest round impacts about 4% of its 228,000-strong workforce as of June 2024.
The Redmond-based computer firm is betting big on AI, investing heavily in infrastructure, chips, and data centers. It estimates that combined expenses would cost the company ~$80 billion in the last fiscal year, which ended Monday.
By automating tasks and slimming down teams, Microsoft hopes to stay ahead in the competitive AI-driven market.
In early 2023, Microsoft also cut 10,000 jobs and acquired Activision Blizzard for $75.4 billion.
Analysts say the company’s latest job cuts signal a strategic shift from legacy operations to high-growth areas, such as AI and cloud services.