Microsoft is laying off 9,000 employees company-wide, accounting for a 4% reduction in workforce. These cuts will affect various areas, including the gaming division led by Xbox. Phil Spencer has stated this will help the gaming division focus on future success by reducing management layers. The mobile game studio King will also lose 200 jobs, which is 10% of its workforce. These layoffs follow earlier cuts in May and June, totaling 6,000 jobs, largely affecting software engineers and other critical areas within the company.
In a message to his staff, Xbox lead Phil Spencer announced that the company would "end or decrease work in certain areas of the business" and that the layoffs were designed to position the gaming division for future success. He noted that this meant following Microsoft's lead in removing layers of management to increase agility and effectiveness.
Microsoft-owned King, the Stockholm-based mobile game studio behind Candy Crush, will also lose 200 jobs accounting for 10% of its staff. The company's significant layoffs come as it seeks to streamline operations after multiple rounds of job cuts in previous months.
According to Washington employment filings, software engineers bore the brunt of the May cuts, accounting for more than 40% of 2,000 jobs eliminated in the state. Cuts in June targeted software engineers, product management and marketing, and legal staff, indicating a focus on core operational areas.
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