Microsoft lays off thousands in latest cut to California’s tech sector
There were more bad news for the technological sector on Wednesday while Microsoft announced staff discounts, preparing for thousands of layoffs around the world, including in its game division.
The cuts add to what has become a wave of job discounts in California technological industry. State technological companies announced 17,874 drops in the first quarter while businesses continue to prioritize efficiency and redirect resources to artificial intelligence investments.
Microsoft has announced that it would dismiss thousands of employees worldwide, including staff of their game and Xbox divisions. Cups affect less than 4% of the company 228,000 working people for people.
“We continue to implement the organizational changes necessary to best position the company and the teams to succeed in a dynamic market,” said a Microsoft spokesperson.
In a memo to employees on Wednesday morning, Microsoft’s game chief Phil Spencer admitted the difficult time for layoffs.
“To position games for lasting success and allow us to focus on strategic growth areas, we will finish or decrease work in certain areas,” Spencer wrote in memo.
The latest layoffs reflect broader changes in industry beyond the overtaking of the pandemic era which initially led to reductions in the workforce. Companies now examine the productivity of employees more intensively while reallocating capital towards the development of AI. Economic uncertainty resulting from regulatory changes and immigration policy changes also encourages businesses to reduce spending.
The main technological companies in the San Francisco Bay region, including Meta, Google and Workday, have reduced staff this year.
These labor reductions represent an important blow for California, because the technological sector underpins the state economy. The industry supports well -remunerated positions and generates substantial tax revenue thanks to purchase options and capital gains when employees sell their shares.
Spencer pointed out that the decision came from changing strategic priorities, declaring that dismissals are “not a reflection of the talent, creativity and dedication of those involved”.
Microsoft provides unscathed services aligned with local laws, including wages, health care coverage and investment resources. The employees concerned will receive a priority consideration for the positions opened within Microsoft Gaming, said the company.
