Microsoft has begun significant layoffs, affecting approximately 9,100 employees, or 4% of its workforce, as part of organizational changes necessary for success in a dynamic marketplace. The cuts impact several divisions, including Xbox, where CEO Phil Spencer noted the importance of increasing agility. Previous layoffs this year included around 6,000 workers in May and additional cuts in Redmond. The decision reflects a strategic focus on enhancing performance and investment in artificial intelligence, amidst ongoing shifts within the company.
The latest layoffs will cut close to 4% of Microsoft’s workforce, totaling around 9,100 people, as the company adjusts to a dynamic marketplace and focuses on strategic growth.
Xbox CEO Phil Spencer emphasized that the cuts are intended to position the gaming division for enduring success by removing layers of management to increase agility and effectiveness.
Microsoft's latest cuts follow previous layoffs earlier this year, with 6,000 workers in May and 300 additional employees cut from the Redmond headquarters last month.
Despite the layoffs, Microsoft continues to invest heavily in artificial intelligence, indicating a strategic shift in focus towards tech innovation and optimization.
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