Microsoft is shutting down its Modern Life Experiences division and firing 200 employees, according to reports on Thursday.
Business Insider, who broke the news, claimed that the company gave the affected employees two options: find another role within Microsoft or take the severance pay and get another job.
Modern Life Experiences was formed in 2018 as part of the company’s efforts to win back professional customers. Its goal was to keep these ‘prosumers’ while running after enterprise customers, which account for a large portion of its revenue.
Although Microsoft is yet to confirm the news, The Verge reported that a senior designer at the company had mentioned a coming “hard news” for the Modern Life Experiences team.
This move is in tandem with what the company said about cutting jobs in its consulting, and customer and partner solutions divisions. Microsoft’s plan seems to be taking shape after keeping mum about its cost-cutting strategies.
In addition to cutting jobs, the company said it would slow hiring and reduce open job roles. Also, it is trimming operations to allow it to focus better.
Windows, Microsoft 365, Microsoft Teams for consumers, Surface, and the gaming arm (such as Xbox and Cloud gaming) appear to be the major focus for now. Other endeavours like Cortana and HoloLens could take a backseat as the company navigates troubling economic waters.
If there is anything else that shutting down the Modern Life Experiences unit proves, it is that Microsoft has still not found a way to make non-business customers part with their money when it comes to its primary software business.
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