Microsoft announced layoffs affecting 4% of its workforce, approximately 9,000 employees, including segments of its Xbox division. These cuts are part of a broader strategy for agility and effectiveness, according to Microsoft Gaming CEO Phil Spencer. The exact impact on Xbox remains undefined, but it includes studio closures and cancelled games. Spencer noted that these changes come despite Xbox's growth in player engagement and game offerings, asserting the decisions are essential for future success and prioritization of strong opportunities in gaming.
Microsoft is cutting 4% of its workforce, approximately 9,000 employees, including layoffs at Xbox, multiple studios, game cancellations, and studio closures.
Phil Spencer stated the layoffs were necessary for the enduring success of Xbox, indicating a strategic shift to enhance agility and effectiveness in the business.
Despite the layoffs, Xbox is experiencing business growth, with more players and games than ever, demonstrating a strong hardware and game roadmap.
Spencer emphasized the need for tough decisions to prioritize opportunities, stating that this focused approach aims to deliver exceptional games and experiences.
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