Xbox Seemingly Affected As Microsoft Announces Thousands More Job Cuts

It's all about money with these folks!

Sad to see. In retrospect, the 2010s were really good for gaming and growth in the industry. I hope we can get there again!

I suppose the contextual good news is that this time it's happening "everywhere" at MS and so we aren't going to see any studio closures but it still absolutely sucks

As long as Phil, Matt, Sarah, Satya, Amy all get their extra bonuses, who cares? Right? Right? All hail Phil!

What is wrong with MS. First time in many years they were having an opportunity to turn their image around, and they do something like this.
Similar to Tango once, it seems like success does not correlate with job security at Microsoft.

Nothing like laying off a bunch of people while constantly touting record profits...

Microsoft does this, they hire thousands, then fire thousands, rinse and repeat over and over. Why the hell they have to operate like that is anyone’s guess. It is most certainly not a company you go to for work in for life.

It sounds like it's centered on management positions so it doesn't sound like its whole teams getting let go. It probably won't affect xbox too much from a project standpoint.

The large bank i work at does this too. They promote a ton of people after they have been there awhile to manage small teams. Then they realize there are way too many small teams and eliminate managers to consolidate to larger teams. Then the process ends up repeating a few years later.

Unfortunately it is happening in a lot of industries.
Nissan car manufacturers announced 11,000 job cuts today as well.

Not totally sure what is going on, but poor people losing their jobs. So sad.

Line go up.

Steady profits aren't enough to please investors. Profits have to continually increase as far as they are concerned. Welcome to the Rot Economy.

@OldGamer999 Because Nissan's profits have declined about 90% and they are expecting a further decline, probably from all the tariff stupidity but Microsoft is posting massive increases in profits.

Microsoft have also laid off about 22,000 people now in the last 3 years as well. Probably replacing as many people as possible with AI.

@MrMagic Nissan got rid of its full size truck production cause they don’t compete with Ford, Chevy and Ram. That was a huge loss of jobs that had nothing to do with tariffs or government. Simply put Nissan don’t make better full size truck than Ford or Chevy. The internet is full of lazy answers so i try and help when and where i can. Nissan should have taken the merger with Honda when they had the chance. Honda moves a lot of units like a Ford or Chevy, would have been good for a lesser high volume brand in Nissan.

The cost of housing is what is leading to people spending less on goods and services. You need to make 124K a year to own a home, most salaries are closer to $65-74K, the money to put a roof over your head is the main cause. Then throw in property taxes on the inflated home values and you are left with empty pockets. But Tech always bounces back and job will come open for future projects. Not like Apple, MS and Google are going away, they will rehire in time.

@TheGameThrifter Nadella is destroying Microsoft, more, and more, every year.

All he cares about is the cloud and finding a way to make ANYTHING an overpriced, unnecessary, subscription service.

@BacklogBrad Sounds like Citibank. That's another company that has poor history and consistently terrible CEOs and management.

@Kloppo Said that for over year now. Look for game pass to hit around $50 a month in couple years if wants to continue its existence.

Can you not lay off employees...FOR FIVE MINUTES?!

@S1ayeR74 “It is most certainly not a company you go to for work in for life.”

Most people who work there already know they’re not a company you retire from… None of the FAANG companies are. You get the job, gain the experience, make bank… and leave. Rinse and repeat. Anyone who think they retiring from Microsoft and didn’t climb the corporate ladder to senior management level is fooling themselves.

@HonestHick Yeah it was a lazy answer about Nissan because if I had checked I would have known they actually had reported a net loss of $4.5 billion for the financial year to March 2025, unlike Microsoft who are reporting massive profits.

I would have also known Nissan said that the uncertain nature of the idiotic U.S. tariff measures makes it difficult for them to rationally estimate their full-year forecast for operating profit and net profit, and therefore they have to leave those figures unspecified.

Didn’t they just boast and brag about being the biggest publisher? Weren’t the revenue and profits last quarter through the roof? 3 Trillion dollars and jobs are being eliminated…?

@MrMagic I'm constantly trying to use AI, but damn it today it hallucinated existence of a parameter in the API spec, and then based the full implementation plan around that non-existent value.
I'd like to meet people using this rubbish to actually make their job easier and quicker, not different type of challenging and usually slower.

Computers can do the jobs of running computers now

@HonestHick ford are moving a lot of units for now anyway. The ecobooms are going to destroy their rep in my country anyway. And for the record Nissan definitely make better trucks than ford or Chevy. The latters are just cheap

@MrMagic US made 15 Billion dollars in those tariffs in just one month for the US and more deals are happening . Thats what happens with fair trade. Couldn’t be happier! 😀

@PlatinumMikey Nissan trucks aren’t awful, they just don’t sell cause Nissan don’t put the R&D into their truck line up like Ford and Chevy and Ram. So no they don’t make better trucks and thats largely why they didn’t sell. Less payload, less MPG, less horsepower etc etc. they weren’t junk, just not what they specialize in. Ford has been the leader in truck sales for almost 5 decades now. The best selling vehicles in America are trucks. Nissan really should take a merger with Honda tho. It be smart business for them.

@HonestHick yes because they are cheap mate. They somehow avoid the gas guzzler tax its mental lol

@HonestHick Yeah they apparently made billions and saved trillions of dollars according to genius Trump. Strange then that he just backtracked and bent over and touched his toes for China.

@MrMagic you don’t know what you’re talking about. There is still no deal in place with China and the deals aren’t meant to hurt china, it’s meant for the US not to lose money, but if China wants to play dirty we can sink their economy with all those boats in their bay right. China is nervous and they are the ones starting to crack and negotiate. Without the US importing goods they are poor. They want to get a deal done and we want a deal done. 15 Billion dollars in a month and we still got more deals to be made. We were losing that in a few days before with those crooked deals.

@PlatinumMikey $48-100K vechiles are cheap? With certain gas engines getting 200K miles on them is cheaply made? . Fake news Mikey . They are expensive vehicles and have been. Have some of the nicest interiors of any vehicle these days.

@HonestHick ford maverick starts 28k
Toyota tacoma starts 33k like I said fords are cheap rubbish mate. Ecobooms

@OldGamer999 in the UK it was reported earlier that unemployment is at a record high worse than it's been in five years and growing. Too many industries and businesses closing all over the place. No job is safe anymore and it worries me.

@HonestHick All 15B was paid by the US consumer… tariffs are taxes… worst part is that the US has alienated their friends so just the loss of tourism to the US offsets any theoretical gains.

@GuyinPA75 yeah it's got to be said he's the worst CEO Microsoft has ever had and I never thought you could get worse than Steve Balmer.

@GADG3Tx87
It’s such a shame.
I’m so lucky been with the same company all my working live. 39 years and counting and wow have they liked after me.

@PlatinumMikey Ford maverick is barely a truck. I was talking F150 and Silverado 1500 and up. Tho my best friends wife bought a maverick and likes it. I wouldn’t pull a boat with it tho. Just saying, Fords, Chevys and Rams are all great trucks. Even the Tundra is decent.

@AlwaysPlaying i won’t even entertain that!

Remember all those commenters on the last earnings report telling everyone it shows how great Xbox is doing? Since then, the game price hike and now layoffs.

So 97% of the employees will be asked to work 3% harder, or automation has made things 3% more efficienct and increased productivity by 3%.

Ultimately we're talking about some percentage of 6000 people having anything to do with Xbox. So... 60 people? Maybe 300? Stop the presses. 🙄

The very sad reality and increasingly stupid pursuit of infinite growth from a place with finite resources.

“AAA” is wrecking the industry

Shame that this happens, but there's clearly reasons for it.

Sadly this is what all large corporations do to remain agile. The more agile you are the more scope there is to make successful choices or required pivots. It's why MS has the largest market cap. It doesn't make easy or popular decisions but it makes the right ones for business. At the end of the day it is ultimately a business doing business things and we should never expect otherwise from any large business.

@GADG3Tx87 To be honest both have been successful in regards to product development and profits, even if they make choices that are unpopular. If you are a shareholder you'd be happy with the results. Business doesn't use emotion like we do it uses logic.

We hope that Xbox will return to developing games with an emphasis on entertainment and regain sales.