Reports suggest that Microsoft is laying off its Modern Life Experiences team, a move that will impact approximately 200 employees.
Microsoft only launched the division in 2018, promising to embark upon a "journey to win back consumers with our vision."
At the time, it had waved goodbye to Windows Phone, Groove Music, and Kinect within the past couple of years. As a result, its vision for consumer services hit a significant stumbling block.
Modern Life Experiences seemed to be a spark that would reinvigorate its vision for consumer services and win back customers it has let down. Yet, four years later, new additions to this portfolio are amiss – despite reported efforts to acquire TikTok and Pinterest.
Moreover, Microsoft seems to have lost ground in delivering a community or social media platform that offered a broader appeal. Meanwhile, Google acquired YouTube and Facebook snapped up Instagram.
Of course, it has the Xbox, and Microsoft 365 subscriptions are soaring, yet the need to align its consumer services is palpable, perhaps leaving its Modern Life Experiences team with an uphill task.
Yet, laying them off altogether signals that Microsoft may – for the immediate future - prioritize the enterprise technology space.
Indeed, Bloomberg reported in July that it planned a "structural adjustment." Meanwhile, recent earnings calls have confirmed it’s c-suite’s to lead the CX technology realm.
Speaking last month, Satya Nadella, CEO of Microsoft, outlined this intent by stating:
We are helping organizations digitize their customer experience, service, finance, and supply chain functions as we continue to outgrow the market in every category.
While “outgrowing” the market is a little premature in the case of the CX and customer service space, the building blocks are there to take the market by storm.