Microsoft appears to be the latest tech firm to attempt to cut costs in the current difficult economy. Unfortunately, that came in the form of a mass layoff within the company. Microsoft is said to laid off around 1,000 employees across a wide range of departments in the company, including the Xbox and Edge teams. The company said it was part of “structural adjustments” and that it will be rehiring in key areas throughout the coming year.
Word of Microsoft’s mass layoffs came out this week, as reported by Axios. The company itself did not reveal just how many employees had been laid off. However, an anonymous source familiar with the matter put the number around 1,000. This is still less than 1 percent of Microsoft’s over 220,000-strong workforce. Even so, the layoff of so many employees at once could be seen as Microsoft adjusting to the current difficulties of the global economy. We’ve unfortunately seen quite a few layoffs as of recent, from startups like Rivian up to giants like Twitter.
For its part Microsoft said in a statement that the reasoning for the layoffs was to adjust the company for its priorities.
“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” a Microsoft spokesperson said. “We will continue to invest in our business and hire in key growth areas in the year ahead.”
This also comes as Microsoft continues to try to close the deal to acquire Activision Blizzard. Where North American authorities have given the deal the go ahead to move forward, United Kingdom anti-trust authorities have raised a little more issue with the deal and it may be delayed until the CMA approves its go-ahead.
Nonetheless, it appears around 1,000 employees at Microsoft have suddenly found themselves out of a job. Stay tuned as we watch for further updates to the story.
TJ Denzer posted a new article, Microsoft (MSFT) cuts around 1,000 jobs across various departments