Microsoft is preparing for another round of job cuts in its Xbox division next week.
The layoffs are expected to affect a significant number of Xbox employees.
This would be the fourth major round of layoffs at Xbox in the last 18 months.
Microsoft is said to be preparing for another round of job cuts in its Xbox division next week, as part of a larger company-wide reorganisation. According to Bloomberg, the layoffs are expected to affect a significant number of Xbox employees. This would be the fourth major round of layoffs at Xbox in the last 18 months.
SurveyXbox, which makes video game hardware and software, has been under pressure to improve profits, especially after Microsoft acquired Activision Blizzard for $69 billion in 2023.
These cuts are likely part of a broader effort by Microsoft to control costs while it continues to invest heavily in artificial intelligence (AI). Bloomberg recently reported that Microsoft plans to eliminate thousands of jobs next week, mostly from its sales team.
Also read: Microsoft eyes more job cuts as it shifts focus to AI and data centers
It’s common for Microsoft to make big internal changes around the end of its financial year, which closes on June 30.
The upcoming layoffs will add to the 6,000 jobs Microsoft already cut in May. Additionally, more than 300 employees were let go earlier this month. In January 2024, the company had laid off around 1,900 employees from Activision Blizzard and Xbox. In May 2024, it shut down several gaming studios, including Tango Gameworks (known for Hi-Fi Rush) and Arkane Austin (developer of Redfall). In September 2024, Microsoft cut another 650 jobs from the Xbox division, and in June 2024, around 1,000 staff were removed from HoloLens and Azure cloud teams.
Also read: Amazon to cut more jobs as AI boosts efficiency, says CEO Andy Jassy
The wave of job cuts highlights the challenges even major tech companies face in managing their workforce while navigating big shifts, like their current focus on AI. For the Xbox team, it shows how the pressure to stay profitable can lead to tough decisions.
Also read: OpenAI and Jony Ive’s first AI device might not be wearable, court documents reveal
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Ayushi Jain
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