Overview

• Microsoft is preparing to announce substantial job cuts in its Xbox division as early as next week.
• This will mark the fourth major round of layoffs within Xbox over the past 18 months.
• The reductions form part of a broader corporate reorganization that includes significant cuts to its global sales teams.
• Executives have increased pressure on Xbox to boost profit margins following the $69 billion acquisition of Activision Blizzard.
• The anticipated layoffs align with Microsoft’s fiscal year-end, positioning the company to reallocate spending toward AI and cloud infrastructure investments.