Xbox is reportedly planning another round of major layoffs next week
The job cuts are part of a company-wide reorganisation, sources say
Microsoft is reportedly planning another round of major job cuts at its Xbox division.
According to a report from Bloomberg, which cites sources familiar with the plans speaking under anonymity, the company is set to conduct a round of layoffs next week, as part of a company-wide reorganisation.
Bloomberg had previously reported that Microsoft plans to cut thousands of jobs next week, mostly consisting of its salespeople, but it now appears its gaming division will also be affected by layoffs.
As the report notes, this will be the fourth major round of layoffs at Xbox in the past 18 months.
In January 2023, the company confirmed plans to lay off approximately 10,000 employees, affecting around 4.5% of its workforce.
While these layoffs covered Microsoft as a whole, it was then reported that Bethesda Game Studios had been affected by them, and that 343 Industries, the studio behind 2021’s Halo Infinite, had suffered a “significant” number of layoffs across the company, which were heaviest towards “individuals working on the single-player side of the studio”.
A year later, in January 2024, it was confirmed that 1,900 staff were to be laid off across Activision Blizzard, Bethesda and Xbox.
According to Microsoft’s Phil Spencer, the decision had been made after Microsoft and Activision Blizzard’s leadership teams “set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth”.
This was followed in September 2024 with the announcement that another 650 jobs were being cut from Microsoft’s gaming division.
“As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long term success,” Spencer wrote at the time.
Then, in January 2025, it was reported that Microsoft had made an unspecified number of layoffs across several divisions, including employees in the Xbox maker’s security, sales and gaming businesses.
