Microsoft lays off nearly 5,000 employees across Xbox, commercial sales
Microsoft cut around 4,800 roles, or 2. 1% of its global workforce, on Monday - the latest in a series of layoffs that's stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.
Key Takeaways
- 1% of its global workforce, on Monday - the latest in a series of layoffs that's stoking fears that AI will replace people at companies.
The layoffs will hit Xbox and commercial sales the hardest, with Xbox losing 1,600 staffers today, according to memos shared with Microsoft's staff.
- That means we will need to adjust resources and roles and shift how we operate so we can have the greatest impact for our customers.
" Coleman stressed that the roles being eliminated today "are not being replaced by AI," but noted, "what is true is that AI is changing how work gets done.
- Speaking about the Xbox layoffs, Coleman said little: "We are restructuring to position the business for long-term success.
Engineering teams across the company will also evolve their structure and priorities to meet customer needs and innovate for the future.
- None of those strategies grew at the expected pace, leading to the core business weakening even as Xbox added more teams and investment.
"And now the industry is facing the most severe hardware crisis in its history," Sharma said.
- As part of this major organization redesign, Xbox is making longtime executive Helen Chiang chief operating officer with end-to-end profit and loss authority across content, hardware, platform, and services.
Stats & Key Facts
- #The layoffs will hit Xbox and commercial sales the hardest, with Xbox losing 1,600 staffers today, according to memos shared with Microsoft's staff.
- #5 billion investment, mirroring a common theme we're seeing among layoffs this year - job cuts are correlating with increased AI spending.
Microsoft cut around 4,800 roles, or 2. 1% of its global workforce, on Monday - the latest in a series of layoffs that's stoking fears that AI will replace people at companies. The layoffs will hit Xbox and commercial sales the hardest, with Xbox losing 1,600 staffers today, according to memos shared with Microsoft's staff.
Here's a snippet from a memo from Amy Coleman, EVP and chief people officer: "Our business is changing because the world around it is changing. The way technology is built, deployed, and used is transforming faster than at any point in my time here. Our customers' needs are shifting, the business models that serve them are shifting, and that means the work itself - what we do, where we focus, and how we're organized - has to transform too.
Companies don't get to choose whether their industry changes; they only get to choose whether they change with it. That means we will need to adjust resources and roles and shift how we operate so we can have the greatest impact for our customers. " Coleman stressed that the roles being eliminated today "are not being replaced by AI," but noted, "what is true is that AI is changing how work gets done.
For more details please read the original article at TechCrunch AI.
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