Microsoft plans to announce thousands of job cuts next week across sales, consulting and Xbox, affecting less than 2.5% of its roughly 220,000 employees.
The planned Microsoft job cuts come as the company redirects spending toward artificial intelligence data centres and chips.
Business Insider reported that the reductions will affect sales, consulting and Xbox roles, with some workers possibly offered alternate positions.
Xbox faces added pressure after Microsoft’s latest filing showed gaming income fell 7% to USD 5.3 billion. The filing also showed a 33% drop in hardware revenue and a 5% decline in content and services revenue.
Asha Sharma, the newly appointed Chief Executive Officer of Xbox, told employees the business “cannot continue as is” and needed a “reset.”
Microsoft has raised console prices three times in a year. The company also launched a voluntary retirement programme earlier this year for U.S.-based employees at level 67 or below.
Read: Office 2021 Support Ends October 13, 2026, Microsoft Says
The programme covered eligible workers with at least 70 combined years of age and service.
The new cuts follow earlier workforce reductions as Microsoft controls costs while expanding capital expenditure on AI infrastructure.
