Microsoft Layoffs: Xbox Division Faces Another Round of Job Cuts Amid Strategic Overhaul

Microsoft is reportedly planning another round of job cuts in its Xbox division next week. This move comes as part of a larger internal restructuring effort across the company. According to Bloomberg, senior leaders at Xbox have already been informed about the upcoming layoffs, although Microsoft has not released an official statement yet.

This will be the fourth major layoff in the Xbox team in the past 18 months. Over this period, Microsoft has not only reduced staff but also shut down several smaller gaming studios. These steps show that Microsoft is continuing to put pressure on its gaming division to perform better and become more profitable.

Why Are These Layoffs Happening?

After Microsoft acquired Activision Blizzard for $69 billion in 2023, the company has faced increased scrutiny. Many analysts believe Microsoft is now focused on making its Xbox business more efficient and aligned with its broader goals.

The new layoffs also come right before the end of Microsoft’s fiscal year on June 30. The company often makes big internal changes around this time to start the new financial year with a leaner and more focused structure.

Uncertainty Ahead for Xbox Employees

While details about which specific teams or how many people will be affected are still unclear, the news has already caused concern among employees. Morale is expected to take another hit, especially after multiple rounds of job losses and restructuring over the past year and a half.

Just last month, Microsoft laid off around 6,000 employees across its product development and engineering departments. This latest round is expected to continue the trend of trimming non-customer-facing roles, as sales and marketing jobs have mostly been spared so far.

What This Means for the Future of Xbox

The Xbox division, which handles both gaming hardware and software, is a big part of Microsoft’s consumer tech business. But the frequent changes and job cuts suggest that the company may be looking to shift strategy. With gaming being such a fast-evolving and competitive industry, Microsoft appears to be streamlining its teams to focus on areas that deliver stronger returns.

Final Thoughts

While Microsoft’s restructuring may help the company become more efficient, the repeated layoffs—especially in Xbox—raise questions about the long-term direction of its gaming business. For now, employees and fans alike are waiting to see how this new round of changes will shape the future of Xbox.

Reference from :- https://www.livemint.com/news/world/microsoft-layoffs-xbox-team-reportedly-faces-new-wave-of-cuts-amid-strategic-overhaul-11750928860645.html