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4th round of layoffs to begin at Microsoft
- Next week, Microsoft is set to conduct another round of layoffs impacting the Xbox division, with the exact number of layoffs yet to be disclosed.
- This round of job cuts is anticipated to be the largest in the past year and a half, part of a broader company-wide restructuring.
- The restructuring may also affect global sales operations teams within Microsoft.
- The Xbox division, responsible for gaming consoles, digital services like Game Pass, and game studios, is likely to bear the brunt of these layoffs.
- In recent years, Microsoft has undertaken several rounds of layoffs across various departments, including 1,900 positions in January 2024 and another 6,000 jobs in May 2025.
- In response to market conditions, Microsoft has been streamlining its operations, which included eliminating low performers in April 2025.
- Employees were given the choice to improve under a performance-improvement plan or leave, with a two-year hiatus on rehiring for underperformers.
- Microsoft's focus on operational cost reduction is evident through job cuts, outsourcing, and a shift towards investing more in artificial intelligence.
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