Microsoft’s Xbox division is reportedly preparing for another major round of layoffs, as revealed by a Bloomberg report indicating that these cuts could be announced as soon as next week. This development follows previous layoffs exceeding 1,900 employees after the closure of the Activision Blizzard acquisition, along with additional reductions thereafter. These layoffs are part of a broader cost-cutting initiative at Microsoft, which has seen thousands of job cuts over the past two years.
According to Tom Warren from The Verge, the timing of these layoffs coincides with the end of Microsoft’s fiscal year on June 30, suggesting a strategic alignment with the company’s financial calendar. Microsoft has not commented on the report, and GameSpot has reached out for further information.
Phil Spencer, CEO of Microsoft Gaming, has previously emphasized the necessity of reducing Xbox staff to maintain sustainable business operations. Xbox president Sarah Bond’s response to the layoffs has been met with mixed reactions from the community.
Despite these workforce reductions, Microsoft continues to innovate in the gaming sector, expanding into branded handheld devices and developing a new Xbox Meta Quest VR headset. The year 2026 will mark Xbox’s 25th anniversary, with Microsoft planning significant celebrations and initiatives.
Financially, Microsoft remains strong, reporting a net revenue of $70.1 billion for the latest quarter, a 13% increase, and a net profit of $25.8 billion, up 18%. The Xbox division itself has experienced year-over-year revenue growth, and Microsoft’s stock price has surged nearly 150% over the past five years.
