As demand for console gaming Microsoft has sacked up to 1,000 employees including many from their struggling Xbox division.

Up to 1,000 staff have been affected, according to sources with some employees ditched after being hired a month ago.

This is the third round of layoffs at Microsoft since July, at this stage it’s not known how many people have been made redundant in Australia.

Currently Microsoft has 180,000 employees with insiders tipping more cuts inflation takes a toll on revenues.

Microsoft said that “Like all companies, we evaluate our business priorities regularly, and make structural adjustments accordingly.”

sources suggest the Xbox division was among those impacted by the redundancies, although it’s not known how many staff have been let go.

Studio Alpha, the Microsoft team dedicated to creating war-gaming simulations, is expected to be cut as part of the Microsoft Mission Engineering department “deprioritizing” some projects that are already underway.

An email from Mission Engineering head Zach Kramer said the company is having to “make tradeoffs as resources are not unlimited and time is the scarcest of them all.”

Consumer electronics, retail and appliance manufacturers businesses are already feeling the effects of soaring inflation around the world with the Chairman at big retailer John Lewis a bellwether for British retailer claiming the situation now is worse than during COVID lockdowns.

“The context in which we find ourselves takes us back to the 1970s,” said Dame Sharon White in an interview at Bloomberg’s Equality Summit overnight

A former Treasury official who also ran Britain’s media regulator, White has led John Lewis since early 2020.

“The cost-of-living crisis is probably more profound than Covid.” She spoke.

The partnership, which includes Waitrose grocery stores, reported disappointing earnings in September.

White’s comments come as fears of a global recession mount.

After the July layoffs Microsoft was forced to fire another 200 employees, now as inflation becomes a major global issue the Company has been forced to make further cuts with more tipped prior to Christmas

Microsoft confirmed overnight that the pink slips were handed to employees across a variety of levels and teams around the world.

Some of the laid-off staff took to Twitter and Blind, among other online forums, to reveal that their jobs had been cut.

According to data compiled by Crunchbase, over 32,000 workers in the US tech sector across Big Tech firms such as Microsoft and Meta had been laid off in mass job cuts during the past three months.

Ride-sharing platform Uber, streaming giant Netflix, as well as Amazon were among companies that had cut jobs.