Microsoft's new round of job cuts is here
What's the story
Microsoft has initiated a fresh round of layoffs, impacting some 500 employees. The majority of the job cuts are from the company's Xbox gaming division, with a few others coming from cloud and AI teams. The latest cuts come after a July announcement where Microsoft had said it would lay off 2.1% of its global workforce, or around 4,800 employees at that time.
Restructuring plan
Microsoft to cut 20% of Xbox workforce
The latest layoffs are part of Microsoft's strategy to streamline its gaming business after years of growth and major acquisitions.
The Xbox division is planning to cut around 20% of its workforce by the end of Microsoft's fiscal year.
The restructuring also includes studio reorganizations and decisions about which businesses it wants to keep.
Memo
Xbox executive addresses restructuring in memo
Xbox executive Matt Booty addressed the ongoing restructuring in a memo.
He said, "The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring."
The latest changes include cutting 268 gaming roles and reorganizing Xbox's studio groups as part of its divestment plans.
Severance
Severance package for laid-off US employees
In July, Microsoft had offered a generous severance package for its laid-off US employees.
The package included up to 39 weeks of base pay for most workers, with a minimum notice period of 60 days and additional time based on seniority and tenure.
This was part of the company's effort to support those affected by the job cuts.