&imwidth=800&imheight=600&format=webp&quality=medium "Microsoft’s Xbox division set for layoffs amid major restructuring plans")
Tech giant Microsoft is all set for another round of job cuts, this time within its Xbox division. The layoffs expected by early July, are part of the company’s ongoing restructuring as it shifts its focus towards artificial intelligence (AI) and cloud infrastructure. According to reports, managers in the Xbox unit have been alerted about significant reductions in staff size. While Microsoft hasn’t officially confirmed the development, sources suggest that various departments, including sales and support roles, might be affected.
This would mark Microsoft’s fourth major round of layoffs in just 18 months. Earlier, in 2024, over 6,000 employees were laid off, and around 650 roles were erased from the Xbox team after the company’s massive $69 billion acquisition of gaming giant Activision Blizzard. Since then, the pressure on the gaming division to improve profit margins has increased.
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What’s driving these layoff?
Microsoft is currently investing billions into AI development and building large-scale data centres. Due to a shift in company goals, the tech giant is reducing teams that do not contribute to its long-term objectives.
The timing of the layoffs, immediately after the company’s financial year ends, is also seen as part of its cost-management approach. While initial reports hinted that the cuts might mainly hit sales teams, it now appears that job losses could span across other departments as well.
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Such frequent layoffs aren’t restricted only to Microsoft. The tech industry at large is experiencing a wave of layoffs in 2025. So far this year, over 63,000 people have been laid off by 147 tech companies worldwide.
Microsoft currently employs around 228,000 people globally, including 45,000 in sales and marketing.
With these fresh layoffs, especially in the Xbox department, the company’s restructuring strategy is visible all around.
