Microsoft Xbox Division Layoffs Reportedly Coming Soon

Microsoft’s Upcoming Layoffs Impacting Xbox Division

Recent reports indicate a significant wave of layoffs at Microsoft, with new developments pointing towards the company’s Xbox gaming division being next in line for job cuts. Originally, the focus was on sales staff, but new information suggests broader implications.

As reported by Jason Schreier from Bloomberg, Microsoft is preparing for substantial layoffs within its Xbox division as part of an organizational restructuring aimed at aligning with the upcoming fiscal year. Sources familiar with the situation, who requested anonymity, assert that management is bracing for the announcements, which are expected as early as next week.

History of Layoffs at Xbox

This is not the first instance of layoffs affecting Microsoft’s gaming division. In late 2024, the company cut around 650 positions from Xbox corporate and support teams. Additionally, over 1, 900 employees from Activision Blizzard, ZeniMax, and various Xbox development teams lost their jobs earlier that same year.

Current Projects and Future Outlook

Despite the anticipated job losses, Microsoft’s Xbox division remains active in launching new titles. Recent releases include high-profile games such as Doom: The Dark Ages, Avowed, and Indiana Jones and the Great Circle. The company is also expanding its multi-platform strategy, allowing Xbox titles to be available on competing platforms, including PlayStation.

Furthermore, Microsoft has confirmed that it is actively developing next-generation Xbox hardware and has introduced an innovative handheld gaming initiative, marking the first official foray into portable gaming.

Looking Ahead

If the latest reports are accurate, Microsoft will provide an official announcement regarding the layoffs next week, coinciding with the conclusion of its current fiscal year on June 30.

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