[Global] Microsoft’s 'significant restructure' lays off 4,800 people and hits Xbox hard

Microsoft has announced its latest round of layoffs, axing 4,800 jobs, around 2.1 per cent of its workforce. Its Xbox arm will bear a significant number of those losses, BBC News reports.

In a memo, Amy Coleman - executive vice president at Microsoft - informed employees that Microsoft needed to focus on areas that can deliver for customers amid a "fast-changing industry".

The global layoffs will reportedly see more than 1,600 roles immediately culled at Xbox.

According to BBC reporting, Asha Sharma - recently appointed Xbox's chief executive - stated in a note to the tech giant’s employees that it was "beginning the most significant restructure in Xbox history".

In addition, Ms Sharma said that four Xbox game development studios - Compulsion Games, Double Fine Productions, Ninja Theory and Undead Lab - would be spun off as part of the changes. As a result, another 1,600 roles will be reduced from Xbox.

In her note, published on Twitter, she said, "These changes are about a bigger future for Xbox, not a smaller one.

"History is full of companies that mistake longevity for inevitability. We will not be one of them."

Ms Coleman reportedly cited changing customer needs as she announced Microsoft's company-wide cuts.

"Companies don't get to choose whether their industry changes; they only get to choose whether they change with it," she said.

She added that, while the company would not replace the lost roles with AI, "what is true is that AI is changing how work gets done".

Source: BBC News

(Link and quotes via original reporting)

Microsoft has announced its latest round of layoffs, axing 4,800 jobs, around 2.1 per cent of its workforce. Its Xbox arm will bear a significant number of those losses, BBC News reports.

In a memo, Amy Coleman - executive vice president at Microsoft - informed employees that Microsoft needed to focus on areas that can deliver for customers amid a "fast-changing industry".

The global layoffs will reportedly see more than 1,600 roles immediately culled at Xbox.

According to BBC reporting, Asha Sharma - recently appointed Xbox's chief executive - stated in a note to the tech giant’s employees that it was "beginning the most significant restructure in Xbox history".

In addition, Ms Sharma said that four Xbox game development studios - Compulsion Games, Double Fine Productions, Ninja Theory and Undead Lab - would be spun off as part of the changes. As a result, another 1,600 roles will be reduced from Xbox.

In her note, published on Twitter, she said, "These changes are about a bigger future for Xbox, not a smaller one.

"History is full of companies that mistake longevity for inevitability. We will not be one of them."

Ms Coleman reportedly cited changing customer needs as she announced Microsoft's company-wide cuts.

"Companies don't get to choose whether their industry changes; they only get to choose whether they change with it," she said.

She added that, while the company would not replace the lost roles with AI, "what is true is that AI is changing how work gets done".

Source: BBC News

(Link and quotes via original reporting)