Microsoft announced on Monday that it will lay off around 4,800 employees — about 2% of its global workforce — as part of a cost-cutting drive that includes a major restructuring of its Xbox gaming division.
The move marks the biggest overhaul in Xbox's history, with around 3,200 gaming roles set to be eliminated over the coming fiscal year. The restructuring also involves spinning off or selling four game studios.
Among those affected by the job cuts is an Xbox employee of 21 years, Matthew LeClair, who took to LinkedIn to share the news.
‘I’ve been laid off’
In his LinkedIn post, Seattle-based LeClair said that he had been laid off despite giving more than two decades to Xbox. He also said that he had poured his “heart and soul” into Xbox.
“Well, after 21 years of time invested, working hard, shipping great products, and pouring my heart and soul into Xbox, Xbox has decided that is a good number to stop at… Yes, I've been laid off by today's Xbox actions…” wrote Matthew LeClair.
He opted to end his post on a humorous note despite the bad news. “So, who is hiring?” he asked, adding a smiley face emoji.
{{/usCountry}}He opted to end his post on a humorous note despite the bad news. “So, who is hiring?” he asked, adding a smiley face emoji.
{{/usCountry}}Layoffs at Microsoft
The announcement is the latest in a series of mass layoffs at the technology giant as it continues to invest heavily in the artificial intelligence race. Like many of its peers, Microsoft is spending tens of billions of dollars on AI infrastructure, including data centres and computing power, while looking to rein in costs elsewhere.
Xbox CEO Asha Sharma told employees in a separate memo that 1,600 positions were being cut immediately, with the rest to follow through fiscal year 2027.
(Also read: Xbox CEO Asha Sharma’s message to staff after 3,200 layoffs: ‘I know this is painful’)
“I know this is painful. These changes will directly affect people who have poured their creativity into building XBOX. Many joined us through acquisitions, while others were recruited here, or sought us out because they loved this industry and loved XBOX. Today's decisions do not reflect their talent or dedication,” Sharma said in an email to employees, which she later posted on social media.
Meanwhile, Amy Coleman, Microsoft's executive vice president, wrote in a memo to all employees that the laid off employees are “not being replaced by AI”, but acknowledged that automation is reshaping how work is done across the company.