Why is Microsoft firing its employees—again? Third round of layoff is happening

Microsoft fired over 1,900 employees from its gaming department earlier

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Key notes

  • Microsoft started its fiscal year with layoffs across departments despite recent successes in AI and cloud.
  • Several ex-employees have shared their experience on X (formerly Twitter) and LinkedIn.
  • This marks the third recent round of layoffs as Microsoft adjusts to market needs post the 2024 fiscal year.
Microsoft building

Microsoft started its fiscal year with quite a shocking opening. The Redmond-based tech giant, despite scoring another height at the previous FY with a bang thanks to AI and cloud, is now firing employees from various departments.

Now-former Microsoft employees have shared their experiences with the layoff on social media. These former Xbox and Microsoft Senior Product Manager employees, for example, wrote that their roles had been terminated, and the number is expected to grow. No comments from Microsoft for now.

“Hello friends –  In light of the recent layoffs at Microsoft, my position was eliminated, and I am now on the lookout for my next career adventure. It was an incredible ride and I’m extremely grateful for the opportunities I was given,” says Angela Visness, the former Senior Product Manager.

It also affects an employee with about 15 years of experience. That’s almost two decades of working.

That’s the third round of Microsoft’s layoff that’s been happening recently. The Redmond company has just closed its 2024 fiscal year on June 30, and it’s common for the tech giant to make a few structural changes to align with the market needs. That, unfortunately, comes at the cost of laying off several employees.

Not too long ago, around 1,000 Microsoft employees also lost their positions across several departments. Another 1,900 from its gaming division were also fired in January 2024.

In an internal memo, Xbox boss and its gaming CEO Phil Spencer said at that time that the layoff happened due to “organizational and workforce adjustments necessary to manage our business effectively and align with our strategic priorities for future growth.”