Overview

• Next week’s planned cuts will be the Xbox division’s fourth major layoff since January 2024, following reductions tied to the Activision Blizzard acquisition and subsequent studio closures.
• Xbox managers are bracing for substantial staff reductions across teams, with sales and supporting functions expected to bear the brunt of the cuts.
• The layoffs coincide with Microsoft’s June 30 fiscal-year end and follow earlier rounds that eliminated nearly 7,000 employees company-wide this year.
• As part of the restructure, some Xbox distribution operations in Central Europe will cease and certain roles may be outsourced to third-party vendors.
• Microsoft plans to redirect savings toward its AI and data-center projects after committing billions to build AI-powered services and infrastructure.