Microsoft CEO Satya Nadella confirmed this morning that the company will reduce the size of its workforce of approximately 127,000 by 18,000. A majority of the layoffs will be from the Nokia Devices and Services division, with about 12,500 jobs being cut. This is the largest round of layoffs in the company's history.
"Later today your Senior Leadership Team member will share more on what to expect in your organization," Nadella wrote to employees. "Our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment."
The company is currently acting to remove 13,000 positions over the next six months. It is unclear what direct impact this will have on Xbox at this time.