Microsoft Corp (NASDAQ:MSFT) will lay off about 9,000 employees in its latest round of headcount reductions, according to media reports.
Sources with knowledge of the matter told CNBC the layoffs will impact less than 4% of the company’s global workforce.
"We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace," a Microsoft spokesperson said in an email.
The Xbox division faces substantial cuts, including about 10% of staff at King, impacting about 200 jobs, and reductions in ZeniMax Media's marketing teams in Europe and the US.
Microsoft Gaming CEO Phil Spencer told employees in an email, shared with Windows Central: “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.
“Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.”
This latest reduction follows earlier cuts this year, including more than 6,000 jobs in May and over 300 in June, continuing a broader efficiency drive aimed at streamlining operations and reducing management layers.
Shares of Microsoft were unchanged on the news, trading hands at about $292.