Microsoft has announced it will lay off approximately 9,000 employees, significantly affecting its Xbox division. Despite these cuts, Phil Spencer reassured the industry of the strength of their gaming platform, stating:

“Our platform, hardware, and game roadmap have never looked stronger.”

He noted that these difficult decisions are made to ensure future success, focusing on prioritizing prominent opportunities. As Spencer puts it, the goal is to enhance agility within Microsoft, although the news of mass layoffs contradicts the positive outlook presented.

Recent Layoff Details

• Microsoft had earlier indicated the intention to dismiss 3% of its workforce, equivalent to about 7,000 employees.
• This recent announcement follows a previous reduction of 10,000 jobs the year before.

Spencer emphasized that these shifts are necessary to align with the changing marketplace while maintaining the company’s successful trajectory in gaming. Throughout this, Microsoft recorded impressive figures in its recent annual report, marking a 16% increase in annual revenue and over $109 billion in operating income.