Microsoft said that it will lay off approximately 9,000 employees, its second huge layoff in months and the largest in more than two years. The Satya Nadella-led tech behemoth issued notices on Wednesday, July 2, affecting the Xbox video gaming business and other operations.
According to a notice, 830 employees at Microsoft's headquarters in Redmond, Washington, have lost their employment.
According to CNBC, a Microsoft spokesperson stated that the business will continue to make similar organisational adjustments to best position its teams for success.
The tech giant went on to say that the layoffs will affect numerous divisions around the world, including sales.
According to AP, Xbox Chief Executive Officer (CEO) Phil Spencer sent a statement to gaming division staff on Wednesday stating that the changes would position the video game industry 'for enduring success and allow us to focus on key growth areas'.
The layoffs have provoked significant comments on social media, with some Americans criticising Microsoft's H-1B employment practices.
In 2024, the tech titan received approval for 4,725 H-1B visas. This year, social media users stated that it applied for 14,181 H-1B visas. However, the assertion remains unsubstantiated. There is no evidence to support the 14,181 number.
According to data given to Washington state employment regulators and reported by the Associated Press, Microsoft slashed another 300 workers based in its Redmond headquarters last month, adding to the approximately 2,000 who lost their positions in the Puget Sound region in May.
In an April earnings call, Microsoft's Chief Financial Officer, Amy Hood, stated that the business was focused on "building high-performing teams and increasing our agility by reducing layers with fewer managers."
