Microsoft will cut 9,000 additional jobs as part of an important template restructuring. It will affect almost 4% of its global workforce, in different equipment, geographical areas and experience levels, although it will especially affect its Xbox and video game divisions.
The measure, announced at the beginning of fiscal year 2026, is another important template reduction in Microsoft. The company, which had about 228,000 employees worldwide in June 2024, announced dismissals in May that affected some 6,000 workers and added to 10,000 layoffs in 2023. One others are explained by the «Organizational changes necessary to place the company as well as possible for success in a dynamic market».
The template cuts arrive after a record quarter in operational profits (26,000 million) and income (70,000 million dollars) and with the action of Microsoft at historical maximums, $ 497.45 per share on June 26. Analysts explain that Microsoft seeks to control costs amid the very strong investments in artificial intelligence infrastructure that have skyrocketed.
Although Microsoft promised that AI was not a threat to employee templates, the growing cost of climbing its AI infrastructure affects the margins (this quarter is expected to be reduced) and is having an undoubted weight in its global strategy.
Diseases in Microsoft, Xbox, one of the most affected
Microsoft is one of the greatest world giants in video games, even more after the multimillionaire purchase of Activision-Blizzard-Kind. But its main division, Xbox, It has not been fought from the template cuts And in this round it will be one of the most affected.
Although it has not been completed, according to Bloomberg, the King Division of Microsoft famous for Candy Crush, will fire 10% of its workforce, which represents approximately 200 jobs. Other European video game offices will also make dismissals. Phil Spencer, executive director of Microsoft Gaming, sent an email to all Microsoft Gaming employees confirming the cuts:
«Today we share decisions that will affect the colleagues of our organization. In order for Gaming to reach a lasting success and allow us to focus on strategic growth areas, we will end or reduce work in certain business areas and follow Microsoft’s example of eliminating management levels to increase agility and efficiency. Out of respect for those affected, team leaders will share the details of today’s notifications and any organizational change in the coming days ».
Last year, Microsoft eliminated almost 2,000 jobs in its video game division, which affected Xbox and Activision Blizzard employees. That same year, he also dismantled three Zenimax games development teams after acquiring video game holding in 2021. This will be the fourth round of cuts in Xbox in the last 18 months, Although the benefits of the video game division maintain an ascending trajectory.
