Microsoft is preparing to implement another wave of job cuts within its Xbox division as part of an extensive reorganization strategy across the company. Reports indicate that the gaming sector is set to see a significant reduction in its workforce, building on past layoffs that occurred following Microsoft’s acquisition of Activision, the studio behind the Call of Duty franchise.
Upcoming Layoffs at Xbox
A recent report by Bloomberg outlined that Xbox leadership anticipates “substantial” layoffs in the division next week. This would mark the first layoffs of the year for Xbox, but it would be the fourth occurrence since the beginning of 2024.
In January of last year, Microsoft laid off approximately 1,900 employees from the Xbox division, which included staff from the recently acquired Activision Blizzard segment. This represented about eight percent of the entire gaming division workforce, and coincided with the cancellation of an unannounced survival game that was under development at Blizzard.
In May, Microsoft closed three studios owned by Bethesda, which included Tango Gameworks—developers of Hi-Fi Rush—and Arkane Austin, the team behind Redfall. These closures resulted in “significant layoffs” as the company shifted its focus toward its “priority games.”
In September, the technology giant reduced its workforce by 650 positions within the Xbox division, a decision taken to manage costs following its $69 billion acquisition of Activision.
This year, Microsoft has already laid off around three percent of its overall workforce, equating to roughly 6,000 employees, driven by rising expenditures in artificial intelligence. However, these layoffs did not impact the Xbox division.
The anticipated layoffs are said to encompass the entirety of the Xbox group. Earlier this month, the division hosted its annual games showcase event, which featured the announcement of the latest Call of Duty installment and showcased a new Xbox-branded handheld gaming PC developed in partnership with Asus.
