Microsoft Xbox Division Layoffs Expected Next Week In Fourth Biggest Wave Of Job Cuts

Microsoft is reportedly preparing for another wave of job cuts. As part of its larger initiative to restructure the company, Microsoft this time appears to be focusing on laying off its Xbox division workers.

If true, this would mark the fourth significant round of layoffs at the company in the last 18 months. These job cuts come in the wake of increasing pressure on Microsoft to prioritise profitability, particularly following its acquisition of Activision Blizzard in 2023 for $69 billion.

Xbox, a division that creates hardware and software for video games, has been facing pressure from Microsoft leadership to increase profit margins.

According to a Bloomberg report, which cited sources with knowledge of the situation, multiple teams within the Xbox division will be affected by the layoffs. While the precise number of job cuts is still unknown, the scale of the impact is anticipated to be significant.

The job cut announcements are expected to come early next week, just ahead of the conclusion of Microsoft’s fiscal year on June 30, a period that typically sees the company implementing internal changes and reorganisation.

The Xbox division has experienced several job cuts throughout the past year. In 2023, Microsoft closed down a few of its gaming subsidiaries and implemented significant Xbox restructuring. 

According to a previous report by Bloomberg News, Microsoft intends to eliminate thousands of positions next week, within its sales department as well.

In May, Microsoft allegedly cut approximately 6,000 jobs, primarily from its engineering and product divisions. While sales and marketing were kept at bay during that round, this time they are likely to be cut as well.

The layoffs come on the heels of Microsoft optimising its operational spending even as it invests heavily in artificial investment, cloud and data centres. The company has also outsourced various functions, including software sales, to outside firms in a bid to cut operation expenses.