Big changes are looming for Microsoft, specifically within its Xbox division. Reports are rolling in about yet another round of significant job cuts, and this one seems set to hit next week as part of a broader company reorganization.
According to a recent report from Bloomberg, which cites anonymous sources familiar with the plans, these layoffs will impact more than just sales teams. Microsoft is looking to trim its workforce across various departments, including gaming, marking the fourth wave of layoffs the Xbox division has encountered in just 18 months.
This latest round of cuts follows a concerning trend. In January 2023, Microsoft announced plans to lay off around 10,000 employees, equating to nearly 4.5% of its total workforce. Notably, studios like Bethesda and the team at 343 Industries, known for creating Halo Infinite, faced significant reductions during that round, predominantly affecting those involved in single-player development.
<pBy January 2024, the situation worsened, with 1,900 layoffs reported across key studios, including Activision Blizzard and the Xbox team. Phil Spencer, Microsoft's gaming chief, attributed this painful decision to a re-evaluation of priorities and alignment on growth opportunities post-acquisition.
<pFast forward to September 2024, and news broke that another 650 jobs were on the chopping block. “We’ve made the decision to eliminate approximately 650 roles across Microsoft Gamingâ€â€mostly corporate and supporting functionsâ€â€to organize our business for long-term success,†Spencer stated at that time.
<pAnd just this past January 2025, it was revealed that Microsoft was once again laying off an undetermined number of employees across various divisions, including the gaming sector and security teams. Each round of cuts paints a picture of a company in flux, adjusting to the quickly changing landscape of gaming and corporate structure.