Dive Brief:
- Microsoft's most recent round of layoffs will include two teams from its advertising division.
- One casualty of the cuts will be the Global Agencies and Accounts team that handles the firm's relationships with media and creative agencies.
- The other cut will be Yarn—Microsoft's specialized creative team meant to keep advertisers educated on the company's advertising platforms.
Dive Insight:
The advertising cuts could affect how Microsoft is able to keep up with competitors, especially in the digital ad market. Microsoft only makes up 2% to 3% of the digital ad market, compared with 31% for Google and 8% for Facebook. In reference to the cuts overall, advertising was just a small chunk—meaning Microsoft is still likely dedicated to digital advertising.