In a noteworthy turn of events, Microsoft is planning to trim its workforce by three percent, a decision that may affect roles within its gaming division. This news offers a complex backdrop against the company’s recent financial gains.
According to a report from CNBC, this strategic decision comes on the heels of a financial disclosure that revealed an impressive 18 percent rise in net income compared to last year, alongside a five percent increase in revenue specifically from gaming.
A Microsoft spokesperson commented to CNBC, stating, “We are implementing crucial organizational changes to position our company for ongoing success in a rapidly changing market,” underscoring their focus on adaptability.
To put the company’s scale into perspective, as of June last year, Microsoft employed approximately 228,000 individuals. A three percent cut could potentially affect around 6,840 employees, though past layoffs suggest this figure may vary.
This forthcoming round of layoffs marks the largest since the notable reduction of 10,000 employees announced in January 2023, which significantly impacted beloved teams like Bethesda Game Studios, The Coalition, and 343 Industries.
Since then, Microsoft has navigated a variety of workforce adjustments, including the elimination of 1,900 roles from its gaming units in January 2024, followed by an additional 650 departures in September.
Earlier this year, Microsoft had already initiated a limited number of layoffs in January, which were linked to performance reviews. However, the latest cuts, as per a company representative, are not related to employee performance.
In light of these developments, Nova Play has reached out to Microsoft for clarification regarding the potential impact on Xbox Studios due to this new announcement.
In conjunction with these changes, Microsoft recently announced plans to raise prices for its Xbox consoles globally, with new game releases anticipated to hit $80.
Interestingly, last month, Microsoft’s published titles not only fared well but also secured top sales positions even on competing platforms, making notable appearances on the PS5 download charts.
