Microsoft is expected to announce another round of layoffs in its Xbox division as soon as next week, with cuts extending to sales and support teams across the company, according to Bloomberg. The move is part of a broader restructuring tied to preparations for the next generation of consoles.
Company managers have already been notified of the planned reductions. Significant changes are anticipated in Xbox distribution across Central Europe, including the closure of operations in some markets.
Pattern of recent reductions in gaming
The upcoming layoffs add to a series of workforce reductions that have affected Microsoft’s gaming operations over the past two years. In May, the company cut roughly 6,000 jobs, followed by more than 300 earlier this month and 1,900 in January 2024 after its acquisition of Activision Blizzard.
Microsoft also closed several studios in the period, including Tango Gameworks and Arkane Austin. Additional reductions included about 650 layoffs in September and near 1,000 job cuts in teams linked to HoloLens and Azure during 2023.
Sales, support and automation plans
The restructuring will not be limited to the games business. Sales and support divisions are expected to experience layoffs as well, with projections indicating the changes could affect thousands of employees across the company.
Executives have framed parts of the reorganization around increasing AI-driven automation, which is cited as one driver for the staffing changes.
