According to Bloomberg, Microsoft is preparing to carry out thousands of layoffs, focusing especially on its sales departments. This new round will add to the one already executed in May, when the company reduced approximately 3% of its global workforce—citing a necessary restructuring to better position the company for success.
The report also notes that Microsoft is outsourcing part of its commercial functions, relying on external companies to manage sales with most of its clients.
Impact on Xbox Division and Broader Tech Industry
Although these measures are not expected to directly affect the video games division at first, they are part of a broader context of massive layoffs that have strongly impacted the technology sector in recent years. The new cuts are expected to be announced in the coming weeks, coinciding with the company’s fiscal year-end.
With around 228,000 employees on staff a year ago, Microsoft has been one of the most significant players in the wave of layoffs shaking the global tech industry. This will be its third major round of layoffs in just six months. In January, the company also made substantial cuts. The most recent layoffs affecting the video game division took place in September, impacting 650 employees.
