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

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.

Recent job cuts at Microsoft