Multinational tech conglomerate Microsoft is reportedly planning “major” cuts throughout its Xbox division. News of potential layoffs, first reported by Bloomberg‘s Jason Schreier, comes just a few short weeks after Microsoft announced it would eliminate around 3% of its global workforce, comprising around 7,000 employees.
Per unidentified sources cited by Bloomberg, Xbox managers anticipate “substantial cuts across the board” as the brand approaches the end of its fiscal year on June 30, 2025.
Schreier expanded on his report via Bluesky. “Microsoft is planning major job cuts at Xbox that will begin next week … Not yet clear how many people, but it’s expected to be big.”
This round of layoffs is just one of many for the gaming subsidiary since its controversial $75.4 billion acquisition of Activision Blizzard in 2023. Despite record profits and price hikes, job-creating enterprises are increasingly opting to trim human contributors from the equation, their pursuit of endless growth incentivising generative AI implementation. The brand is also leaning into its subscription-based Xbox Game Pass service as traditional hardware sales tumble.
Since January 2024, Microsoft Gaming has shuttered countless studios and laid off thousands of employees. Team members throughout Xbox Game Studios, ZeniMax, and Activision Blizzard have been affected. In addition to employee cuts, the company has canceled several notable releases and shuttered smaller studios. Among those impacted were its “Black Panther” title as well as the game’s development studio, Cliffhanger.
Additionally, Xbox is rumored to have canceled its long-teased first-party handheld. The brand is prioritizing third-party hardware collaborations with brands like AMD and ROG.
This is a developing story. Stay tuned to Outrun Gaming for more.
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A lifelong gamer raised on classic titles like Crash Bandicoot, Spyro, and Croc, Stephanie brings her expertise of gaming and pop culture to deliver unique, refreshing views on the world of video games, complete with references to absurd and obscure media.
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