Xbox to be hit with ‘major layoffs’
Since completing the $70 billion acquisition of Activision Blizzard in late 2023, Microsoft has been looking to pump up Xbox’s profit margins. That effort has already led to several rounds of job cuts, with another now set to take place starting this week.
Bloomberg’s Jason Schreier has learned that Microsoft is about to announce another round of job cuts, and sources anticipate that Xbox will be hit pretty hard. According to The Verge, managers at Microsoft have already been briefed on plans, but they have yet to be revealed to lower-level employees.
This will be described as a ‘restructuring’ of Xbox and will also see Xbox teams in certain regions being culled. Specifically, it is claimed that some smaller Xbox teams in central Europe will be impacted.
Microsoft had already announced plans to cut 6000 jobs across its various divisions back in May. This next round of layoffs will be in addition to that. In 2024, Microsoft also cut thousands of roles across its gaming divisions.
KitGuru Says: The full scope of this has yet to be revealed but with the news hitting the press, Microsoft should publicly confirm its plans this week.
