You’re about to see more changes in Microsoft’s Xbox division. The tech giant is preparing to cut jobs within its gaming business, and the move could take effect as early as next week. These upcoming layoffs are said to be “major,” according to a Bloomberg report, and follow earlier hints that job reductions were on the way.
If you’ve been following developments closely, you might recall earlier reports suggesting that Microsoft was planning Xbox job cuts “potentially by the end of the month.” Now, sources familiar with the matter say those cuts are not only confirmed but imminent.
Microsoft managers have already been briefed about the changes. The layoffs are expected to affect not just the Xbox team but also other areas of the company, including its global sales division. The timing comes as Microsoft begins its new financial year, indicating this may be part of a broader corporate restructuring.
Xbox strategy shift and European operations
You’ll also see Microsoft make structural changes to how Xbox is managed in different parts of the world. Sources say the company is rethinking its distribution strategy across Central Europe. As a result, Xbox operations may shut down entirely in certain regions.
This shift suggests that Microsoft is now focusing on preparing for the next generation of Xbox consoles. The company is streamlining its processes and prioritising areas shaping its gaming future.
If you’re in one of the affected regions, these changes could mean fewer local support teams and reduced regional marketing. For those working in Xbox-related roles, the uncertainty of this restructuring could mean significant job losses or changes in responsibilities.
Another round in a long string of cuts
This new wave of layoffs adds to what has already been a challenging year for Microsoft employees. In May, the company cut 6,000 jobs across various teams. Earlier this month, more than 300 employees were also let go. And this isn’t the first time the Xbox unit has seen reductions.
In January 2024, Microsoft laid off 1,900 employees after acquiring Activision Blizzard. That move affected both Activision and Xbox workers. Then, in May, Microsoft shut down several game studios, including the creators of Hi-Fi Rush (Tango Gameworks) and Redfall (Arkane Austin), further slashing the workforce.
The pattern goes back even further. In September 2023, Microsoft cut another 650 Xbox roles, and in June of that same year, around 1,000 jobs were lost from its HoloLens and Azure cloud teams.
What this means going forward
For you as a gamer or an industry observer, these moves suggest that Microsoft is in a significant transition. The company is trimming down ahead of what could be a big leap toward future hardware, new services, or a revised content strategy. However, the repeated job cuts also reflect the ongoing challenges in the gaming industry—an industry still recovering from post-pandemic shifts, changing player habits, and economic pressures.
While Microsoft hasn’t officially commented on next week’s layoffs, all signs indicate another shake-up. If you’re watching the Xbox brand or working in the gaming industry, it’s a space worth keeping a close eye on over the coming days.
