Microsoft is planning to cut thousands of jobs across its sales, consulting, and Xbox gaming divisions, according to Business Insider. The layoffs could be announced as early as next week, though the timing may change. Fewer than one in 40 of the company's approximately 220,000 employees are expected to be affected, and some may have the option to move into other roles. This round is smaller than last year's reductions, partly because a voluntary retirement program for U.S. workers at level 67 or below with combined age and tenure of at least 70 years saw about a third of nearly 9,000 eligible employees take the buyout. The cuts follow a 7% drop in gaming revenue to $5.3 billion in the latest quarter, with hardware sales down 33%, and come amid a 19% share price decline over the past month.
Microsoft CorporationGaming revenue dropped 7% and hardware sales fell 33%, indicating weak end-customer demand for Xbox products.