Microsoft and Xbox lay off 10,000 employees

Considerably more than last time because they'll get thousands of new ones when/if the Activision Blizzard King acquisition goes through.

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Many giant companies' fiscal year will end on April 1 and one quarter just ended, which means that most of them are making big cuts to please investors. That's one of the reasons why the rumours earlier this week claiming that Microsoft was going to lay off thousands of employees were very believable even if that company's year ends on June 30. Now we know it's true, as well as the good old "we have to do this instead of lowering the salary and bonuses of the higher-ups" reasoning behind it.

Microsoft CEO Satya Nadella confirms the company is making 10,000 layoffs by the end of this fiscal quarter. He tries to make it sound less negative by stating this is less than 5 percent of its entire base and that they'll treat those affected "with dignity and respect" by giving them "a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days' notice prior to termination, regardless of whether such notice is legally required".

All well and good, but it - as you might have understood by now - doesn't stop me from wrinkling my nose when this many people lose their jobs while many leaders keep their giant salaries and the company is paying $69 billion for Activision Blizzard King.

Still, it's also somewhat understandable, as Nadella repeats what many CEO of game companies have said earlier: The incredible growth during the heights of the pandemic is now taking a swan dive. We'll see if these steps are enough to balance that out or if price increases for Xbox Series and Game Pass are around the corner as well.

Microsoft and Xbox lay off 10,000 employees

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