Microsoft has announced that they will be laying off 10,000 employees, citing the new to cut costs during these uncertain economic conditions.
These layoffs affect the entire company, but a good number will also be affecting the Xbox gaming side of things as well.
According to sources (via Bloomberg), first party teams including Bethesda will also be affected by these layoffs. It may seem odd that Xbox is affected by these layoffs, as the division recently broke earnings records back in Q1.
“First, we will align our cost structure with our revenue and where we see customer demand,” Microsoft CEO Satya Nadella said. “Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of our total employee base, with some notifications happening today.”
As stated above, these layoffs will occur over the course of the coming month as FY23 Q3 ends at the end of March for the company. This round of layoffs are much larger than the 1000 we previously reported on a few months ago.
Current circumstances appear to have led to some management issues for the Microsoft, but despite this, they are still fighting for their acquisition of Activision Blizzard.