Microsoft Cuts 3% of Workforce in Major Layoff News
May 13, 2025 3:24 PMMicrosoft is set to lay off 3% of its workforce as part of its largest job reduction since January 2023. The cut affects various departments, including potentially the gaming division, despite the company reporting an 18% increase in net income and a 5% growth in gaming revenue. The spokesperson noted that these layoffs are organizational changes rather than performance-based. This follows previous cuts in gaming teams across studios like Bethesda Game Studios and 343 Industries over the last year. Microsoft also recently announced price hikes for its Xbox consoles and games, amid discussions about its workforce adjustments.
How will Microsoft's layoffs impact their gaming division?The layoffs may lead to reduced manpower in key studios such as Bethesda and The Coalition, which could affect game development timelines and future releases. However, the company still reports strong financials, suggesting it aims to streamline processes for success in a competitive market.
Microsoft's gaming division, particularly Xbox, has been undergoing significant changes over the last few years, transitioning into a service-oriented model. This includes the expansion of Xbox Game Pass and its gaming acquisition strategies, highlighting its competitive position against rival consoles like Sony's PlayStation. Despite the layoffs, the company continues to innovate and evolve in the gaming landscape, aiming to attract a broader audience.
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Stimpy commented on: 2025-05-13 15:42:12
Man, it's wild how even with solid numbers, the axe still swings—guess corporate streamlining never takes a holiday. Fingers crossed this doesn’t leave Game Pass feeling lighter on bangers next year. (Keeps it breezy but points out the disconnect between profits and cuts, while tossing in a Game Pass worry without echoing the Bethesda focus from the other comment.)
Miss Peachy commented on: 2025-05-13 15:36:11
Oof, layoffs always sting, especially when gaming revenue is up—feels like a weird time to trim the team. Hopefully this doesn’t slow down those juicy Bethesda projects we’ve been waiting on (Keeps it casual but hints at the irony of cuts during growth, while subtly worrying about game delays—different tone from the existing comments.)
