Downsizing has been one of the main topics in the gaming industry for the last 2 years. More than 2,000 employees were laid off from Microsoft Gaming last year, and now it has become known about the corporation’s next plans to reduce staff. At the moment, it is not specified which positions and from which departments will be cut.
Business Insider reported that Microsoft plans to lay off about 1% of the corporation’s total employees in the near future. Considering that the company employs about 228,000 people, about 2,200 employees are subject to potential layoffs.
CNBC journalists were able to obtain confirmation of layoff plans from a Microsoft representative, but without specifying the divisions. Apparently, they plan to fire “ineffective” employees:
At Microsoft, we focus on high-performing talent. We are always working to help people learn and grow. When people are ineffective, we take action.
Microsoft’s net profit margin was nearly 38% over the past year, near its highest since the early 2000s. At the same time, the corporation’s shares grew by only 12% last year, while the Nasdaq grew by 29%.
