Microsoft appears poised for substantial workforce reductions in its gaming division, with sources indicating potential layoffs as soon as next week.
Bloomberg reports "major" job cuts looming across Xbox operations, while The Verge reveals Microsoft leadership has been notified about both Xbox-specific and broader corporate restructuring - with sales teams particularly vulnerable.
For Xbox specifically, The Verge suggests these cuts precede Microsoft's next console generation launch. This follows Microsoft's recent AMD partnership announcement for future Xbox hardware, though official release timelines remain unconfirmed.
The Complete Xbox Gaming Portfolio Post-Activision Blizzard Acquisition
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The Verge additionally reports Microsoft restructuring Xbox distribution across Central Europe, with plans to exit certain regional markets entirely.
Anonymous Microsoft employees reportedly anticipate imminent workforce reductions, describing the atmosphere as resignation about impending changes rather than uncertainty.
The context explains employee concerns - Microsoft's gaming division has seen relentless restructuring since its $69 billion Activision Blizzard purchase. The company cut 1,900 jobs in January 2024, followed months later by shuttering Arkane Austin (Redfall) and Tango Gameworks (Hi-Fi Rush). September 2024 saw 650 additional gaming layoffs, while May's shocking 6,000 global cuts represented 3% of Microsoft's entire workforce.
As Xbox chief Phil Spencer told IGN in June 2024: "Running a sustainable, growing business within Microsoft sometimes requires making tough decisions - ones I don't particularly relish, but that leadership demands."
