Microsoft plans further job cuts at Xbox, gaming division after four layoffs in past 18 months

Bloomberg reports that Microsoft is planning to cut jobs at its gaming division, Xbox. Microsoft has cut jobs at Xbox alone four times in the past 18 months, but it appears more layoffs are on the way.

Microsoft Plans Major Job Cuts at Xbox Gaming Division - Bloomberg
https://www.bloomberg.com/news/articles/2025-06-24/microsoft-plans-major-job-cuts-at-xbox-gaming-division

Microsoft planning 'major' Xbox layoffs next week | The Verge
https://www.theverge.com/microsoft-xbox/691967/microsoft-xbox-layoffs-job-cuts-rumor

Analysis: Reports of more gaming layoffs at Microsoft spark questions about future of Xbox – GeekWire
https://www.geekwire.com/2025/analysis-reports-of-more-gaming-layoffs-at-microsoft-sparks-questions-about-future-of-xbox/

Xbox Braces For Fourth Major Layoff Round In 18 Months As Microsoft Pivots To AI - Microsoft (NASDAQ:MSFT) - Benzinga
https://www.benzinga.com/markets/tech/25/06/46077791/xbox-braces-for-fourth-major-layoff-round-in-18-months-as-microsoft-pivots-to-ai

Microsoft layoffs continue: Company set to make substantial cuts in Xbox division next week - Technology News | The Financial Express
https://www.financialexpress.com/life/technology-microsoft-layoffs-continue-company-set-to-make-substantial-cuts-in-xbox-division-next-week-3891066/

Bloomberg reported that Microsoft plans to implement large-scale job cuts at its Xbox division in the first week of July 2025 as part of a company-wide restructuring. According to sources, Xbox management expects large-scale job cuts to be implemented across the group.

The Verge points out that Microsoft is planning to restructure some of its Xbox operations in preparation for the release of the next-generation Xbox. According to sources, Microsoft is restructuring its Xbox distribution system across Central Europe, which will result in the closure of the Xbox business in some regions.

Microsoft will cut 1,900 jobs, including those of Activision Blizzard, a game maker it acquired in January 2024.

Microsoft lays off 1,900 Activision Blizzard and Xbox employees - GIGAZINE

Bethesda Softworks announced that it would close game studios under its umbrella in May 2024. This included Japan's Tango Gameworks , developer of Ghostwire: Tokyo and Hi-Fi Rush , but the studio was spared closure when Krafton took over the business from Xbox .

Microsoft decides to close several game studios under Bethesda Softworks, including those behind 'Redfall,' 'The Evil Within,' and 'Ghostwire: Tokyo' - GIGAZINE

In September 2024, it was reported that the company had laid off approximately 650 employees working in the gaming division.

Microsoft lays off about 650 employees working in the gaming division - GIGAZINE

Microsoft also announced that it will lay off about 6,000 employees, or less than 3% of its workforce, in May 2025 to reduce management positions.

Microsoft lays off 6,000 employees to streamline management positions - GIGAZINE

On the other hand, it has been pointed out that Microsoft CEO Satya Nadella's compensation increased by 63% year-on-year.

It has been revealed that CEO Satya Nadella's compensation increased 63% year-on-year to over 12 billion yen while Microsoft cuts jobs and closes its game studios - GIGAZINE

Microsoft has reportedly been pressuring its Xbox division to increase revenue since acquiring Activision Blizzard. According to the company's first quarter 2025 financial results, Xbox hardware revenue is declining, but overall gaming revenue is up 17% year-on-year to $13.2 billion.

Microsoft announces financial results for the first quarter of 2025, game hardware sales decline but overall gaming revenue increases - GIGAZINE

According to Bloomberg, Microsoft often makes major organizational changes near the end of its fiscal year, which ends on June 30.