Microsoft will conduct another round of layoffs within the Xbox division next week as part of a company-wide reorganization.
Managers within Xbox are expecting ‘substantial cuts’ across the entire company, according to anonymous people familiar with the plan.
As Bloomberg points out, this will be the fourth major layoff at Xbox in the past 18 months. It follows the three major cuts last year and the closure of several subsidiaries. Back in September, Microsoft Gaming eliminated 650 corporate and supporting roles.
The American gaming subsidiary of Microsoft, which is the third major video game manufacturer behind Nintendo and Sony, have been under pressure from higher-ups to boost profit margins since the purchase of Activision Blizzard in 2023 for $69 billion. Xbox also just revealed the ROG Xbox Ally and ROX Xbox Ally X handheld systems.
And the layoffs arent just affecting Xbox. In early July, Microsoft will cut thousands of jobs amid heavy spending on AI. One month ago, the Washington-based tech corporation laid off 6,000 employees worldwide, which made up three per cent of their workforce. These roles will mostly be corporate and sales roles.
As The Economic Times points out, Microsoft tends to make their changes towards the end of its fiscal year.
Source: Bloomberg
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