Microsoft layoffs: Windows maker likely to do fourth round of job cuts soon

Microsoft

Microsoft is reportedly preparing to lay off a significant number of employees from its Xbox division as part of a broader company-wide restructuring. According to a Bloomberg report citing people familiar with the matter, the cuts could be announced as early as next week and are expected to impact thousands of roles across the gaming business.

This marks the fourth major round of layoffs in the Xbox unit since 2023, following three previous job cuts and the closure of several subsidiary game studios. Managers within the division are said to be bracing for “considerable” reductions in staff.

The layoffs are reportedly being driven by internal pressure to boost profit margins across the Xbox hardware and software operations. This focus on cost-efficiency has intensified since Microsoft completed its $69 billion acquisition of Activision Blizzard in 2023 — the largest in the company’s history. As Microsoft approaches the end of its financial year on June 30, the tech giant is streamlining operations across teams.

The Xbox layoffs will add to Microsoft’s ongoing rounds of workforce reduction. Earlier in June, the company eliminated more than 300 jobs, following a larger round of over 6,000 job cuts across various units. In total, Microsoft has reduced its workforce by over 6,300 roles in recent weeks, making it one of the largest layoff phases since 2023, when 10,000 jobs were slashed in a single wave.

While Microsoft has yet to officially confirm the latest round of cuts, CEO Satya Nadella previously told employees during an internal meeting that recent layoffs were not related to performance. Instead, he referred to them as part of a “realignment” to better position the company for future growth.

Microsoft has not issued a public statement regarding the upcoming job cuts in the Xbox division.