Microsoft Cuts 300 Washington Jobs Amid Gaming Division Restructuring

Microsoft is continuing its restructuring efforts in the gaming division by cutting approximately 300 jobs in Washington, bringing the total number of layoffs to around 450 companywide. This move comes just two months after Microsoft eliminated nearly 4,800 gaming and sales jobs, including 605 in Washington.

The company said it's working to reset its gaming business, which is a significant undertaking. The latest layoffs included management and operating roles, as well as members of first-party game studios, such as Halo Studios, one of Xbox's most iconic franchises.

Microsoft initially announced that it would cut 3,200 roles within the Xbox division by the end of its fiscal year, which is equivalent to about 20% of the division. With these latest layoffs, the restructuring is roughly 75% complete. This series of layoffs is considered the biggest in Xbox history.

Amy Coleman, executive vice president and chief people officer for Microsoft, stated that the layoffs are a consequence of the 'changing technology industry' and the need to adjust resources and roles to respond to AI's impact on the company. She emphasized that the eliminated roles were not being replaced by AI but rather how work gets done.