- Microsoft is laying off more employees across various departments, including security, sales, devices, and gaming.
- The layoffs come on the heels of last year’s job cuts and raise concerns over the gap between executive pay and workforce reductions.
- Despite significant investments, Microsoft’s gaming division is affected by the layoffs, indicating that even key growth areas are not immune.
Microsoft has started another round of layoffs affecting staff in security, sales, devices, and gaming departments. This comes after recent job cuts linked to the company’s performance in response to the current economic challenges.
Why it matters: Microsoft’s CEO was able to secure a $30 million raise for himself despite laying off over 2500 employees last year. It seems the CEO is planning to run back the clock this year as well.
According to Business Insider, employees in the security division were notified about layoffs earlier this week. A Microsoft spokesperson called the layoffs “small in size” but didn’t share how many people were impacted.
Gaming, an important part of Microsoft’s future plans, is also impacted. The company has invested heavily in gaming, including acquiring Activision Blizzard. However, these layoffs show that even growth areas are not safe from layoffs these days.
The experiences and devices division, which focuses on creating new hardware and software, is facing similar issues. This area has become more competitive in recent years.
This comes almost a year after Microsoft laid off over 2000 thousand employees in the gaming division.
Meanwhile, the security division, led by Charlie Bell, a former Amazon cloud executive, is among the teams facing layoffs. This is notable given Microsoft’s recent push on cybersecurity.
The company expanded its Secure Future Initiative last year, focusing on security after major breaches, including attacks by Chinese hackers that accessed customer emails.
Microsoft’s increased focus on security even became a key factor in employee performance reviews. CEO Satya Nadella highlighted this shift in an email, saying, “If you’re faced with a choice between security and another priority, choose security.”
This wave of recent layoffs is part of a broader trend in the tech industry, with even giant firms like Microsoft reviewing their workforce to stay efficient in an unpredictable global economy.
Do you think 2025 will mark another year of layoffs in the gaming and tech sector? Drop your thoughts in the comments, or join the conversation on the Tech4Gamers forum.
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