Reports of coming layoffs swirl at Microsoft as workers worry they're next

Core Viewpoint - Microsoft is undergoing significant layoffs, with reports indicating that thousands more employees could be let go, particularly in sales, marketing, and gaming divisions, following previous rounds of layoffs earlier in the year [1][3][9]. Layoff Details - In mid-May, Microsoft announced the termination of over 6,000 employees, including 1,985 in Washington, followed by an additional 305 layoffs in early June [2][8]. - The upcoming layoffs are expected to focus heavily on sales and marketing roles, with specific cuts anticipated in the gaming division [3][9]. Employee Sentiment - The impersonal nature of the layoffs, conducted via mass conference calls and email notifications, has created anxiety among remaining employees, leading to speculation about their job security [4][5]. - Employees have expressed concerns about the lack of communication from management regarding layoffs, with many relying on news reports and peer discussions for information [4][5]. Industry Context - Traditionally, tech workers, especially software engineers, were considered safe from layoffs; however, the shift towards artificial intelligence is disrupting this trend [6][7]. - The layoffs are part of a broader strategy to streamline operations and flatten management layers, rather than being performance-based [7]. Impact on Gaming Division - The gaming division has faced multiple rounds of layoffs since the acquisition of Activision Blizzard, with significant job cuts occurring in 2024 [9]. - In the fiscal year ending June 2024, the gaming division generated $21.5 billion in revenue, a notable increase from $15.4 billion the previous year, despite ongoing challenges in Xbox hardware sales [10][11].