Microsoft Cutting 7,800 Jobs, But Xbox Appears to Be Unaffected

The job cuts amount to around 6 percent of the company's total global workforce.


Technology giant Microsoft has announced a major round of layoffs, but the Xbox and HoloLens teams do not appear to be affected. Following a New York Times report this morning, Microsoft issued a press release that confirmed it will cut up to 7,800 jobs, mostly in its phone hardware business.

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The job cuts, which total around 6 percent of the company's workforce, are part of a wider restructuring effort of the company's phone business "to better focus and align resources." The layoffs will take place over the next several months.

"As a result, the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million," Microsoft explained.

An email from Microsoft CEO Satya Nadella offered some additional insight on the move.

“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family," Nadella said. “In the near-term, we'll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility."

For more on this news, be sure to read GameSpot sister site CNET's full report.

Less than a year after Microsoft acquired Nokia's phone business for $7.6 billion in 2013, the company cut around 18,000 jobs, its widest ever round of job eliminations.

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