Microsoft is reportedly preparing for another significant round of layoffs within its Xbox division next week, as part of a broader company-wide restructuring effort. According to a Bloomberg report, senior staff across Xbox have already been informed to expect widespread job cuts, although the company has yet to release an official statement.
This would mark the fourth major workforce reduction within Xbox in the past 18 months. The layoffs come amid ongoing internal pressure following Microsoft’s $69 billion acquisition of Activision Blizzard in 2023. Since then, the tech giant has shuttered multiple gaming subsidiaries and restructured its gaming operations in an effort to improve profitability and streamline resources.
Sources suggest the latest round of layoffs is expected to coincide with the end of Microsoft’s fiscal year on June 30 — a period historically associated with major organisational changes at the company. Analysts note this timing allows Microsoft to enter the new financial year with a leaner structure and a renewed strategic focus, particularly as it shifts attention toward artificial intelligence and other emerging priorities.
While the exact number of job losses remains unclear, reports indicate that several teams within the Xbox division could be impacted, alongside roles in Microsoft’s global sales operations. The move is expected to affect further morale within Xbox, which has already endured multiple waves of redundancies and internal reshuffles.
In May, Microsoft laid off around 6,000 employees, accounting for approximately 3% of its global workforce. Earlier, in January 2024, the company terminated 1,900 roles at Activision Blizzard and Xbox, followed by another 650 job cuts within the gaming unit in September.
As of June 2024, Microsoft employed approximately 228,000 people worldwide, with about 45,000 staff working in sales and marketing. CEO Satya Nadella previously stated that recent layoffs were not performance-related but necessary to realign teams in line with Microsoft’s evolving business priorities, particularly its growing emphasis on AI-driven initiatives.
