Microsoft Layoffs Continue as Xbox Staff Face More Job Cuts
▼ Summary
– Microsoft is planning significant layoffs in its gaming division, potentially starting next week, with cuts expected across Xbox and sales teams.
– The layoffs are reportedly timed ahead of the next generation of Xbox consoles, which will be powered by AMD but lack a confirmed release date.
– Microsoft is restructuring its Xbox distribution in central Europe and will cease operations in some regions.
– Employees are bracing for layoffs, following previous cuts in 2024, including 1,900 staff in January and 6,000 in May, totaling 3% of Microsoft’s workforce.
– Xbox boss Phil Spencer acknowledged making tough decisions to sustain the business, despite personal reluctance.
Microsoft is reportedly preparing for another round of layoffs within its Xbox division, signaling continued restructuring across its gaming operations. According to sources familiar with the matter, the cuts could begin as early as next week, affecting multiple teams, with sales departments likely facing the brunt of the reductions.
Insiders suggest these layoffs are part of a broader strategy ahead of Microsoft’s next-generation console launch. The company recently confirmed a partnership with AMD to develop hardware for future Xbox systems, though an official release date remains unannounced. Alongside these changes, reports indicate Microsoft is scaling back its Xbox distribution network in Central Europe, potentially exiting certain markets entirely.
Employees within the gaming division have expressed concerns, with several anonymous sources stating that job losses feel inevitable. The mood reflects a pattern of workforce reductions since Microsoft’s $69 billion acquisition of Activision Blizzard, a deal that reshaped the company’s gaming portfolio but also led to significant restructuring. Earlier this year, Microsoft eliminated 1,900 positions, followed by studio closures at Arkane Austin and Tango Gameworks. Additional cuts in September and May brought the total layoffs to over 8,500 employees across its gaming business.
Xbox head Phil Spencer acknowledged the difficult decisions required to maintain business sustainability. In a June interview, he emphasized the necessity of tough choices to ensure long-term growth, even when those decisions are far from ideal.
The latest layoffs underscore the challenges of integrating a massive acquisition while balancing financial stability. As Microsoft refocuses its gaming strategy, the industry watches closely to see how these changes will impact upcoming projects and the broader Xbox ecosystem.
Image credit: Victor J. Blue/Bloomberg via Getty Images
(Source: IGN)
