Microsoft Plans 200-400 Azure China Layoffs and Xbox Job Cuts After $20B Spend
MSFT•Microsoft will cut Xbox jobs after June 30 following over $20 billion in five-year content and hardware investment, while Xbox annual revenue fell by almost $500 million and accountability margin dropped to 3%. Meanwhile, Azure plans to lay off 200–400 China employees despite 40% year-over-year revenue growth in Intelligent Cloud.
1. Xbox Leadership and Reset
Xbox CEO Asha Sharma, appointed in February, says the division needs a fundamental reset after investing more than $20 billion in content, platforms and hardware subsidies over five years while annual revenue declined nearly $500 million and accountability margin fell to 3%. She plans job cuts, marketing budget reductions and tighter spending controls to stabilize the unit, focus on exclusive titles and adopt a healthier hardware model shortly after Microsoft’s fiscal year ends on June 30.
2. Azure China Layoffs
Microsoft will eliminate between 200 and 400 positions in its Azure cloud unit in China starting July 6, offering severance based on tenure plus seven months’ salary and optional internal transfers to other locations. The move comes as Azure revenue grew 40% year-over-year and Intelligent Cloud sales reached $34.7 billion last quarter, but rising regulatory and geopolitical pressures in China are testing Microsoft’s cloud expansion strategy.
