Microsoft will lay off 10,000 people, affecting Xbox and Bethesda employees

Microsoft's Major Shakeup: 10,000 Layoffs to Hit Xbox and Bethesda Divisions

Microsoft announced today that it will lay off 10,000 employees, with the majority of the cuts affecting the Xbox and Bethesda divisions. The layoffs are part of a broader restructuring effort by the company, which aims to streamline operations and focus on areas of growth.

The layoffs will primarily affect employees in Xbox and Bethesda, with some cuts also taking place in other divisions such as Windows and Surface. The company stated that the layoffs are necessary to "better serve players and creators" and to "drive success in the gaming industry."

Xbox and Bethesda are both key areas of growth for Microsoft, with the gaming market expected to continue expanding in the coming years. However, the company has faced increased competition in these divisions, and the layoffs are seen as a way to better position the company for success in the highly competitive gaming industry.

The layoffs are also part of a broader trend in the tech industry, with many companies facing pressure to cut costs and streamline operations in the face of economic uncertainty. Microsoft is not the only company to announce layoffs recently, with other major tech firms such as IBM and Oracle also announcing job cuts.

The affected employees will be offered severance packages and outplacement support, according to the company. The layoffs are expected to take place over the next few months.

The news has been met with mixed reactions, some employees and industry experts have expressed disappointment and concern over the impact on the gaming industry, while others have praised the company's decision to focus on growth areas and streamline operations.

Overall, this news from Microsoft is a reminder of the ongoing challenges facing the tech industry, and the difficult decisions that companies must make to remain competitive in a rapidly changing market.

Why is Microsoft going to make so many layoffs?

The reasons that have led Microsoft to make this decision are several: the increase in digital spending that occurred during the coronavirus pandemic is now easing, with Microsoft customers "optimizing their digital spending to do more with less," he explains. the CEO in the statement. In addition, macroeconomic circumstances portend recessions in those parts of the world that are not already experiencing them, as we read in this letter. Finally, as the icing on the cake of all these "significant changes" that Nadella mentions, is the arrival of the next great wave of computing, driven by advances in AI according to the head of Microsoft.

"I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to everyone who will continue to contribute as we chart our path forward. Thank you for the focus, dedication, and resiliency you show every day for Microsoft and our customers and partners", concludes Satya Nadella in his letter.

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