In a shocking update, Microsoft has started another round of layoffs, affecting nearly 500 employees, with most of the cuts including employees in the Xbox gaming division.
As per an insider, the cuts also included employees from different units, including cloud and artificial intelligence units.
The latest cuts came after layoffs in July, when the American tech giant laid off a substantial number of employees, stating it would trim 2.1% of its global workforce, or about 4,800 employees at the time.
It is pertinent to mention the company has been restructuring its gaming business after years of expansion and significant acquisitions.
Xbox is currently planning to hold another level of downsizing, which may affect nearly 20% of the workforce by the end of the current fiscal year while reorganizing its studios and reviewing its business operations.
The latest restructuring includes eliminating 268 gaming-related positions, reorganizing the Xbox studio group and offering an update on the company’s plans to divest certain assets.
In a restructuring memo, Xbox executive Matt Booty stated measures completed since July, including studio asset divestitures, have accounted for about three-quarters of the previously announced restructuring work.
Notably, the memo also included information regarding relief which has been offered to the affected workers across the US.
Eligible workers were offered up to 39 weeks of base pay, along with at least 60 days of notice and extra compensation or time relying on factors including seniority and tenure.
The latest cuts highlight Microsoft’s continuing efforts to reduce costs and reorganize its gaming operations as the company reassesses its workforce, studios and business portfolio.
