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Rumor: First Wave of Microsoft Job Cuts to Affect XBox Division
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Old 01-23-2009
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Rumor: First Wave of Microsoft Job Cuts to Affect XBox Division

According to an insider, Team XBox has the scoop that the first wave of Microsoft job cuts will hit the Entertainment and Devices division, including Xbox, Zune and Windows mobile.

But as they point out, its a bit surprising as the division experienced good revenue growth last quarter.

To quote: 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.

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.

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