Mass Layoffs at Microsoft: Xbox and Gaming Studios Under Threat - Media Reports
Microsoft is preparing for a new wave of large-scale layoffs. According to Business Insider, approximately 5,500 employees could lose their jobs, including personnel from the Xbox division.
Layoffs at Xbox could be announced next week. Thousands of jobs in sales, consulting, and the gaming division will be affected.
In terms of scale, this represents about 2.5% of the company's approximately 220,000 employees. Some employees may receive offers to transition to other positions.
This is another stage of Microsoft's major restructuring. The company is simultaneously investing tens of billions of dollars in AI development and has already spent significant amounts on its gaming division. Now, the corporation is looking for ways to cut costs.
Reports suggest that Arkane Lyon, Ninja Theory, Compulsion Games, Double Fine, and Undead Labs may be at risk. Microsoft is considering various scenarios, including finding new owners for the teams instead of closing them down.
Insider Nate The Hate stated:
No one is safe. As part of cost-cutting measures, MS is eliminating all possible unnecessary expenses. The best-case scenario is if studios facing closure find buyers or negotiate independence with publishers. The problem is that such deals take time.
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