Microsoft on Wednesday announced that it is cutting thousands of workers, its second large-scale layoff in months.
4% of Workforce Affected, Estimated 9,000 Jobs Cut in Microsoft
The company would not comment on the number of employees who would be cut, but said it would represent less than 4% of the number of employees it had a year ago, which would translate to about 9,000 workers, according to the Associated Press.
Microsoft announced the layoffs will touch several teams across the world, including its sales team and its Xbox video game unit.
Company Cites Strategic Realignment in Volatile Market
“We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,” it said in a statement.
“Even in the best of times, we have regularly adjusted our workforce to meet the strategic demands of the business,” the company added, according to AFP.
King Unit and ZeniMax Among Affected European Offices
Microsoft’s Stockholm-based King unit, which produces the hit game Candy Crush, is laying off 10% of its workforce, or around 200 workers, Bloomberg reported citing individuals familiar with the plans.
Other European offices, including ZeniMax, also started notifying workers that layoffs were under way.
Microsoft Already Laid Off 6,000 Employees in May
The firm, which employed around 228,000 people globally as of June 2024, had already made the cut in May when it laid off some 6,000 employees.
That round of layoff was the second-largest since 2023, when around 10,000 jobs were cut, as Microsoft made a turnaround towards AI to keep ahead of the competition.
In April, Microsoft notified staff that it would be outsourcing more software sales to small and mid-sized clients to third-party companies. It said it periodically examines its organisational make-up so that investments are kept in line with long-term growth.
