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"Bulk Of" Microsoft's 1400 Job Cuts To Strike Entertainment Division

Illustration for article titled Bulk Of Microsofts 1400 Job Cuts To Strike Entertainment Division

According to sources speaking with ZDNet's resident Microsoft blogger, Mary-Jo Foley, "the bulk of [Microsoft's] immediate 1,400-person cuts" are going to fall on the Entertainment & Devices Group. Which includes the Xbox team.

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We were told the same thing earlier today, and when contacted Microsoft PR issued the following statement: "This is a company-wide action, in which every division will be affected. We cannot share any other details at this time".

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The E&D Group also includes Zune and Windows Mobile, so losses would presumably be spread across all three. While we're not terribly interested in either of those, we are interested in potential cuts to the Xbox team, particularly since we've already seen two instances of that today in the sackings at Gamerscore and ACES.

If all these sources are to be believed, though, a blog and the Flight Sim guys might only be the start. We'll no doubt here more in the coming days.

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Where are the Microsoft cuts falling? [ZDNet]
[Image: (cc) JD Lasica/Socialmedia.biz ]

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DISCUSSION

If you're going to cut from the entertainment division the smart thing would be to kill the zune team completely (the iphone totally outflanked them and they simply aren't innovative enough to ever recover), completely drop Rare (biggest mistake the division ever made was to drop $350 million on those guys), unfortunately also get rid of flight sim (a number of die-hard people love it, but it just isn't profitable enough and it has no growth potential). That's got to be at least half of the 1400 right there (and I'm assuming that not all of the 1400 are from the entertainment division). Good news for the good devs on flight sim, I assume they are still ramping up the internal Halo team and some of them will move over there.

That would be the smart thing to do, but part of why I left MS many years ago was because they seldom did the smart thing.

Plus there are probably about a 100 extra VP's they could fire.