A report from the site Bloomberg revealed that Microsoft is planning a new wave of layoffs in its Xbox division. The company also intends to reduce the availability of brand consoles, according to leaks.
The information, corroborated by journalist Tom Warren of The Verge, came from internal sources familiar with the company’s plans.
According to them, the cuts are part of a restructuring project following the acquisition of Activision Blizzard and are expected to affect several areas of Microsoft’s gaming division.
The sources revealed that managers in the Xbox division were warned in advance, but exact dates for the layoffs have not been determined.
However, they are expected to occur at the start of the company’s next fiscal year, beginning July 1st. This would be the fourth wave of mass layoffs in the Xbox division in just 18 months.
In January last year, 1,900 people were laid off. In September, another 650 were let go. In May 2024, Microsoft also ended contracts with four major game studios.
This year, a small round of cuts occurred in January, but in May, another 6,000 people were dismissed from the company.
According to sources spoken to by Warren, the Xbox division in Europe is also expected to undergo geographic changes, including shutting down operations in certain regions, which could raise product prices in those markets.
Despite the cuts, Microsoft reported a 5% revenue growth during the third quarter of fiscal year 2025, according to financial data recently released by the company itself.
Photo and video: Unsplash. This content was created with the help of AI and reviewed by the editorial team.
