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- Microsoft has slashed 9000 employees, accounting for 4% ofthe workforce.
- This is their second round of layoffs this year, with the first one impacting 4000 employees.
- Zenimax Media and Candy Crush developer were also impacted by the layoff, with more Xbox layoffs expected soon.
This year is set to become significantly tougher for Microsoft, which has experienced its second wave of layoffs.
The Tech Giant is reported to have cut down 9000 of its employees, which accounts for 4% of its total staff.
Why it matters: The world is on the verge of an economic recession, with numerous layoffs affecting companies worldwide.
This report comes from Bloomberg, which also reports that the layoffs impacted Xbox. This is Microsoft’s second wave of layoffs this year, following the first one in May, which resulted in the loss of 4,000 employees.
On the other hand, Windows Central‘s insider sources indicate that this layoff affected Zenimax Media and the developer of Candy Crush. 200 jobs were cut from the gaming sector, and more layoffs are expected soon.
Microsoft has also cancelled Ever Wild, an original IP they worked on for more than a decade, according to VGC. The game struggled in development despite being rebooted, which ultimately led to its cancellation.
As of June last year, Microsoft had reported 228,000 workers, with the majority of them working in Sales and Marketing. The layoffs have affected employees working in Sales and Marketing the most.
The report also revealed Phil Spencer’s internal e-mail to staff, which says:
We will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.
This comes straight after Microsoft pressured its employees into making AI usage mandatory. While AI usage does make work more efficient, it also reduces the manpower required by a slight percentage, hence the layoffs.
Throughout 2025, Microsoft is making a significant $80 billion investment in AI-enabled data centres.
What are your thoughts on this layoff? Let us know in the comments below or at the official Tech4Gamers Forums.
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[News Reporter]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheer@tech4gamers.com
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