SEPTEMBER 15, 2024 — LAYOFFS CONTINUE
Following over 1,900 previous layoffs this year, Microsoft is laying off another 650 employees.
In the memo, Spencer said the roles affect mostly corporate and support functions, and were made “to organize our business for long term success.” He clarified that no games, devices or experiences are being canceled and no studios are being closed as part of these cuts.
According to Xbox chief Phil Spencer…
For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work. As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long term success.
I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the U.S., we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the U.S. packages will differ according to location.
With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs. Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.
Throughout our team’s history, we have had great moments, and we have had challenging ones. Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players. We appreciate your support as we navigate these changes and we thank you for your compassion and respect for each other.
Phil
JUNE 7, 2024 — 1,000 MIXED REALITY TEAM EMPLOYEES TARGETED
Microsoft has confirmed that another round of layoffs will impact 1,000 employees working in its mixed reality unit which is responsible for the HoloLens 2 augmented reality headset.
According to a company spokesperson, “Earlier today, we announced a restructuring of Microsoft’s Mixed Reality organization. We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting-edge technology to support our soldiers. In addition, we will continue to invest in W365 to reach the broader Mixed Reality hardware ecosystem. We will continue to sell HoloLens 2 while supporting existing HoloLens 2 customers and partners.”
In addition, Microsoft's cutbacks are expected to affect Azure for Operators and Mission Engineering teams, with the former facing as many as 1,500 layoffs.
MAY 19, 2024 — MORE EMPLOYEES TARGETED
After a major layoff of 10,000 employees, Microsoft is targeting additional jobs.
JANUARY 25, 2024 — 1,900 EMPLOYEES
Following its acquisition of Activision, the company has laid off 9% of its gaming workforce, about 1,900 employees.
Microsoft Gaming chief Phil Spencer noted, “As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.”
JULY 15, 2023 — ANOTHER 276 EMPLOYEES IN SEATTLE, WASHINGTON
Microsoft has announced 276 Seattle-area layoffs in the company’s Redmond and Bellevue offices, which aren’t part of the 10,000 layoffs Microsoft announced in January and completed by the end of March.
According to a spokesperson, “Organizational and workforce adjustments are a necessary and regular part of managing our business.”
MAY 6, 2023 — MICROSOFT UPS THE ANTE
It appears Microsoft is now targeting 11,000+ employees, affecting all sectors, but primarily focused on human resources and engineering.
JANUARY 13, 2023 — 300 GITHUB EMPLOYEES TARGETED
Microsoft-owned software development and version control service provider GitHub announced a reduction in force of 10% of its workforce and transitioning its remaining employees to remote work status.
According to a GitHub spokesperson, “We announced a number of difficult but necessary decisions and budgetary realignments to both protect the health of our business in the short term and grant us the capacity to invest in our long-term strategy moving forward.”
GitHub CEO Thomas Dohmke noted, “To start, we will align our work with the areas where we can best impact these goals and our customer’s needs across all of our products. Unfortunately, this will include changes that will result in a reduction of GitHub’s workforce by up to 10 percent through the end of FY23.”
JANUARY 19, 2023 — POOF! 10,000 EMPLOYEES TO GET LAID OFF
Satya Nadella shared the below communication today with Microsoft employees.
We’re living through times of significant change, and as I meet with customers and partners, a few things are clear. First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less. We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one. At the same time, the next major wave of computing is being born with advances in AI, as we’re turning the world’s most advanced models into a new computing platform.
This is the context in which we as a company must strive to deliver results on an ongoing basis, while investing in our long-term opportunity. I’m confident that Microsoft will emerge from this stronger and more competitive, but it requires us to take actions grounded in three priorities.
First, we will align our cost structure with our revenue and where we see customer demand. Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of our total employee base, with some notifications happening today. It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas. We know this is a challenging time for each person impacted. The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible.
Second, we will continue to invest in strategic areas for our future, meaning we are allocating both our capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting in other areas. These are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts. As such, we are taking a $1.2 billion charge in Q2 related to severance costs, changes to our hardware portfolio, and the cost of lease consolidation as we create higher density across our workspaces.
And third, we will treat our people with dignity and respect, and act transparently. These decisions are difficult, but necessary. They are especially difficult because they impact people and people’s lives – our colleagues and friends. We are committed to ensuring all those whose roles are eliminated have our full support during these transitions. U.S.-benefit-eligible employees will receive a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days’ notice prior to termination, regardless of whether such notice is legally required. Benefits for employees outside the U.S. will align with the employment laws in each country.
When I think about this moment in time, the start of 2023, it’s showtime – for our industry and for Microsoft. As a company, our success must be aligned to the world’s success. That means every one of us and every team across the company must raise the bar and perform better than the competition to deliver meaningful innovation that customers, communities, and countries can truly benefit from. If we deliver on this, we will emerge stronger and thrive long into the future; it’s as simple as that.
I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead. Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day.
Satya
OCTOBER 18, 2022 — ANOTHER 1,000
It appears that Microsoft has quietly laid off approximately 1,000 employees companywide, including team members in the Xbox gaming division to Microsoft Strategic Missions and Technology.
According to a company spokesperson, "Like all companies, we evaluate our business priorities on a regular basis and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead."
AUGUST 14, 2022 — ANOTHER 200?
Microsoft has notified 200 Modern Life Experiences team members that they have 60 days to apply for another job within the company or take their severance pay.
JULY 13, 2022 — MAJOR LAYOFF SAID TO BE A REALIGNMENT OF BUSINESS GROUPS AND ROLES
The company has announced that it would be “realigning business groups and roles” which will result in a reduction in headcount, reportedly impacting less than 1% of Microsoft’s 180,000-person — up to 1,800 employees, companywide and including all divisions and customer and partner solutions and consulting teams.
According to a company spokesperson, “Today we had a small number of role eliminations. Like all companies, we evaluate our business priorities on a regular basis and make structural adjustments accordingly. We will continue to invest in our business and grow headcount overall in the year ahead.”
SEPTEMBER 16, 2020 — UNSPECIFIED NUMBER OF LAYOFFS IN FARGO, NORTH DAKOTA
The company announced an unspecified number of layoffs at its Fargo campus, noting that the decision was driven by business needs.
JUNE 27, 2020 - MICROSOFT CLOSES ALL 83 RETAIL STORES
The company has announced that it will be closing all of the retail stores, including their flagship headquarters store.
According to a company spokesperson, “Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location. We are grateful to our Microsoft Store customers and we look forward to continuing to serve them online and with our retail sales team at Microsoft corporate locations."
Due to the unbiquity of Microsoft products across a wide-spectrum of devices, Microsoft couldn’t compete with Apple and their relatively closed architecture.
Allegedly, employees will be reassigned to corporate facilities if possible.
MARCH 7, 2019 — 200 COMMERCIAL SALES DIVISION JOBS GONE
Microsoft is planning to layoff approximately 200 employees in its commercial sales division as the company continues to reorganize to take advantage of the increasing impact of cloud services. The last major reorganization of the division occurred in 2017.
Original post…
It appears that Microsoft has announced massive layoffs and it is attributing it to a change of leadership and direction. The layoffs will mostly affect the sales and marketing people.
Let us not forget that in July of 2015, Microsoft shed 7,800 jobs and wrote off $7.6 billion of its Nokia acquisition costs. And in 2016, Microsoft announced that it would be making approximately 2850 jobs redundant.
The word on the internal chat app is that management "has booked numerous conference rooms and that some employees are being scheduled for short 15-minute meetings with their respective managers.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?
