Rumor: First Wave of MS Job Cuts to Affect Xbox Division
Yesterday, we told you that Microsoft will cut 5,000 jobs over the next 18 months, with 1,400 of those being cut as early as this month. ZDNet's Mary Jo Foley, who has covered the tech industry for 20 years and keeps close tabs on Microsoft strategy, products and technologies for the past 10 years, is reporting that the Xbox division will be the one suffering the major bulk of the first wave of job cuts. Jo Foley said:
I’m hearing from my sources that the Entertainment and Devices (E&D) unit — the group that is responsible for Xbox, Zune and Windows Mobile — is being hit with the bulk of the immediate 1,400-person cuts. (I have no specifics about how this will affect Microsoft’s product roadmap, but stay tuned.)
This comes as a surprise, considering that the Entertainment and Devices (E&D) revenue grew 3% driven by strong holiday demand for Xbox 360 consoles with a record 6 million units sold in the quarter.
