Microsoft Announces Second Wave of Layoffs in a Week

Microsoft confirms more cuts are incoming, including to its gaming and security teams, unrelated to last week's layoffs.

The cuts continue at Microsoft where a yet undisclosed number of jobs are set to be slashed in the security, sales and gaming teams.

The news has broken just six days after the company said it would be losing some personnel due to poor performance. These latest job losses are separate and details are scant at the moment.

Only weeks into the year, and it looks like it could be another tough one for the computing giant, which made nearly 2000 people redundant last January. However, 2023 was a staggeringly awful year for Microsoft employees as around 10,000 workers lost their jobs.

Microsoft Announces More Job Cuts

It was Business Insider, which broke the story, having been tipped off by “two people familiar with the matter”. However, while Microsoft has confirmed that there are to be more cuts, it has not disclosed numbers.

We do know that the job losses mooted will be felt across a large range of businesses including security, sales, gaming, experiences and devices.

The gaming team has already taken a hit after Microsoft bought Activision Blizzard and King. The $68.7 billion deal was given the green light by authorities in the UK in October 2023; and just months later 10% of the combined workforce was cut.

 

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Microsoft Security Concerns

However, alarm bells are ringing at the mention of the security teams not least because Microsoft has suffered some epic breaches in the past few years.

This time last year, the company was targeted by a state-backed Russian cyber criminal gang. Although Microsoft didn’t publicize it until January, the data breach happened in late 2023 and the data was taken from the company’s corporate systems. The leak included the email accounts of senior leadership.

Microsoft Under Scrutiny

Microsoft was already in the crosshairs of the Department of Homeland Security for a Chinese-sponsored breach that targeted its customers not employees.

In May, perhaps in response to growing pressure from the authorities, Charlie Bell, Executive Vice President at Microsoft Security released a statement saying that the company was expanding its Secure Future Initiative. He said: “Microsoft plays a central role in the world’s digital ecosystem, and this comes with a critical responsibility to earn and maintain trust. We must and will do more. We are making security our top priority at Microsoft, above all else—over all other features.”

News of job cuts in security seem counterintuitive in light of these grand statements. However, we don’t know the scope as yet.

We do know, though, that Microsoft is facing criticism for its AI offerings and is also fighting an antitrust case. The company is facing battles on many fronts and getting lean to be able to fight back is obviously its priority.

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Written by:
Katie has been a journalist for more than twenty years. At 18 years old, she started her career at the world's oldest photography magazine before joining the launch team at Wired magazine as News Editor. After a spell in Hong Kong writing for Cathay Pacific's inflight magazine about the Asian startup scene, she is now back in the UK. Writing from Sussex, she covers everything from nature restoration to data science for a beautiful array of magazines and websites.
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