Microsoft Announces More Layoffs To ‘Position Gaming For Enduring Success And Allow Us To Focus On Strategic Growth Areas’

Microsoft has announced that it is making another round of layoffs at the Xbox format holder, with a note distributed to staff by Phil Spencer revealing the cuts are necessary to “allow us to focus on strategic growth areas.”

An article in The Seattle Times stated that Microsoft predicted as much as 4% (around 9,100 people) of the hardware giant’s total employees could be affected across all departments including its gaming division. Microsoft spokesperson commented:

We continue to implement organizational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace.

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Meanwhile, Xbox chief Phil Spencer distributed the following email to all employees at Microsoft Gaming:

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.

Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.

Microsoft recently announced that it had teamed up with AMD for its next-generation of hardware lineup, which is the same company that is also powering the tech behind the PS6. For more than a year now, the Xbox manufacturer has been releasing many of its major exclusives on PlayStation and Nintendo hardware, as it shifts to a multiplatform strategy amidst flagging Xbox console sales.

One of the next major franchises to see a release on the PS5 is Gears of War, which will be arriving in late August in the form of Gears of War: Reloaded, a spruced up version of the classic 2006 shooter.

[Source – The Seattle Times, VGC]