Microsoft has revealed plans for additional job cuts across various departments as part of performance-related layoffs.

Gaming is one of the divisions affected

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In brief: Microsoft is implementing new job cuts across its business, impacting employees across gaming, experience & devices, sales, and security divisions. The news arrives just a week after Microsoft said it was making performance-related cuts, which are unrelated to the latest layoffs.

A Microsoft spokesperson said that the layoffs would affect a small number of employees without specifying exact numbers, reports Business Insider, which cites two people familiar with the matter.

Employees started receiving notifications on Tuesday about layoffs in Microsoft's security unit. The Redmond giant was criticized by the US government last year for security lapses in what it called the "preventable" Exchange Online email service hack by a China-linked group.

In May 2024, the company launched its "Secure Future" initiative, telling employees that security had become a "top priority" that trumped everything else when it comes to importance. Microsoft even started tying security performance directly to employee reviews and compensation.

Microsoft's recent reductions in its gaming division occur nearly one year after the company let go of approximately 1,900 employees in this area, predominantly impacting Activision Blizzard staff who joined after Redmond's $68.7 billion purchase of the gaming powerhouse. Additionally, some employees from Xbox and ZeniMax were also affected.

It was reported yesterday that CEO Satya Nadella could have shut down the Xbox division in 2021. Instead, he decided to acquire ZeniMax Media and Activision Blizzard.

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Last week, Microsoft announced that it would be implementing job cuts based on employee performance. A representative stated, "We take necessary actions when individuals are not meeting performance expectations." Typically, companies will fill positions vacated due to performance-related dismissals, suggesting that Microsoft's total workforce will remain stable. The company clarified that the recent layoffs are unrelated to these performance-based reductions.

It's not just Nadella who is looking to replace poor performers. Meta CEO Mark Zuckerberg this week announced that 5%, or around 3,625 employees, of its low performers were being moved out. Zuckerberg said Meta typically manages out people who aren't meeting expectations over the course of a year, but the process will be expedited. Those being released will be replaced by new hires throughout 2025.

Since the beginning of 2020, Microsoft has let go of around 12,550 employees. In contrast, during this timeframe, Satya Nadella's pay has increased by 78%, climbing from $44.3 million in fiscal year 2020 to $79.1 million in fiscal year 2024.