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yesterday

Microsoft Readies Fourth Major Xbox Layoff Ahead of Fiscal Year End

Executives say the cuts will realign spending toward AI development after the 2023 Activision Blizzard deal.

Buzz among Microsoft managers is that this will be a ‘substantial’ round of reductions.
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Overview

  • Microsoft plans to announce another round of layoffs at its Xbox division next week, marking the fourth major cut in 18 months.
  • Xbox managers expect substantial staff reductions across all teams and first-party studios.
  • The planned cuts coincide with Microsoft’s fiscal year close on June 30 as part of a broader cost-cutting reorganization.
  • Pressure to boost profit margins at Xbox has intensified since Microsoft’s $69 billion acquisition of Activision Blizzard in 2023.
  • Microsoft has shifted resources toward AI-driven initiatives across its divisions, including sales and engineering teams.