Microsoft is set to initiate significant job cuts in its Xbox gaming division as soon as next week, according to reports. This comes amid broader layoffs affecting various sectors within the company, as it aims to restructure its operations, reports 24brussels.
Insiders indicate that Microsoft managers have already been informed about the upcoming downsizing, which is expected to extend to the sales organization. The company’s decision coincides with the onset of the new financial year.
As part of the restructuring strategy, Microsoft plans to rejuvenate its Xbox business with an eye toward the launch of the next generation of consoles. Sources also suggest that Xbox distribution will be reconfigured across central Europe, leading to operational shutdowns in certain regions.
This latest round of layoffs adds to the 6,000 job cuts made earlier this year in May, along with an additional 300 layoffs announced this month. The impending reductions follow a series of substantial layoffs in the gaming sector over the past 18 months, including the layoff of 1,900 employees from Activision Blizzard and Xbox in January 2024, and the closure of several game studios, like Tango Gameworks and Arkane Austin, in May 2024.
Furthermore, Microsoft has recently trimmed its workforce by 650 Xbox employees in September 2024 and cut approximately 1,000 from its HoloLens and Azure cloud teams in June of the previous year. These efforts reflect the company’s ongoing recalibration in response to shifting market demands.
