Xbox Confirms Plans for “Major” Round of Layoffs Next Week
Microsoft has confirmed it is planning for “major job cuts” across Xbox next week to boost profits. There is no official word on how many employees will be laid off.
Xbox is facing massive layoffs beginning next week after Microsoft confirmed to Bloomberg that the entire group will be affected.
The latest round of cuts will be the fourth major round of layoffs at across Microsoft’s gaming divisions in the last year and a half after 1,900 people were laid off in January 2024, before 650 were cut in September 2024, and a smaller number in January 2025. That’s not to mention the more than 6,000 employees laid off across Microsoft last month.
Why Is Xbox Cutting Jobs?
In the report by Bloomberg’s Jason Schreier, a source revealed that the Xbox division is receiving pressure from Microsoft executives “to boost profit margins.”
The ongoing cuts are part of a restructuring to improve its performance across a dynamic marketplace. While layoffs are unwanted, it was always likely to happen after Microsoft’s acquisition of Activision Blizzard in October 2023 for a record-breaking $69 billion.
Who Might Be Affected?
Microsoft has not confirmed how many of its employees will be affected by the layoffs beginning next week, but a source told Schreier that “it’s expected to be big.”
As for Xbox, Bloomberg’s report says managers at the company expect to see “substantial cuts across the entire group.” With Microsoft wanting to boost profit margins, there are likely to be cuts across many of its developer studios.
What This Means for Xbox Going Forward
Substantial job cuts could potentially impact Xbox-exclusive titles and first-party games already in development. Internal shake-ups could see games delayed, post-launch content cut, or games outright canceled.
Until next week, when we know more about how many employees will be laid off and what studios will be affected, all we can do is expect large-scale and significant changes.
Conclusion
Sources have told Bloomberg’s Jason Schreier that “major” cuts will be made across Xbox starting next week. We don’t know how many staff will be affected and what games, if any. What do you think about the latest round of layoffs? Share your thoughts in the comments.
Fueled by a passion for gaming and the ever-evolving world of gaming news, Daniel loves connecting with seasoned and new players to bring games to life on the page, exploring their narratives and gaming trends. A self-published fiction and fantasy author, Daniel has nearly 20 years of experience writing gaming news and a love for storytelling that drives his enthusiasm to deliver breaking news, in-depth analysis, and industry innovations. You will find him in-game as "Windfell."
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