Microsoft laying off about 9,000 workers

Microsoft says it is laying off approximately 9,000 workers, its second mass layoff in months and its largest in over two years.

The tech giant began sending out layoff notices on Wednesday, which affected the company’s Xbox video game business and other divisions.

Among those losing their jobs are 830 workers tied to Microsoft’s headquarters in Redmond, Washington, according to a notice sent to state officials.

Microsoft said the cuts will affect multiple teams worldwide, including its sales division, as part of “organizational changes” needed to succeed in a “dynamic marketplace.” The company won’t disclose the total number of layoffs, except that it was approximately 4% of the workforce it had a year ago.

A memo to gaming division employees Wednesday from Xbox CEO Phil Spencer said the cuts would position the video game business “for enduring success and allow us to focus on strategic growth areas.”

Xbox would “follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” Spencer wrote.

Microsoft employed 228,000 full-time workers as of June 2024, the last time it reported its annual headcount.

Its latest layoffs would cut fewer than 4% of that workforce, according to Microsoft. But it has already had at least three layoffs this year and it’s unlikely that new hiring has matched the amount lost. Either way, a 4% cut would amount to approximately 9,000 people.