Microsoft is again planning large-scale cuts in the Xbox gaming division

Microsoft will conduct another wave of large-scale layoffs in the Xbox division next week. This will happen as part of the company’s overall reorganization. Bloomberg reports with reference to its sources.

Reductions are expected throughout the division.

This will be the fourth major reduction in the Xbox division in the last 18 months, after three waves of layoffs last year and the closure of several subsidiaries.

Xbox, which produces gaming software and hardware, is now under pressure from Microsoft’s management. They want to increase profitability after the acquisition of Activision by Blizzard.

Earlier, Bloomberg reported that Microsoft plans to lay off thousands of employees next week, mostly in sales. The tech giant usually makes large-scale organizational changes at the end of its fiscal year, which ends on June 30.

In May, Reuters wrote that Microsoft was laying off almost 3% of its employees worldwide, which is about 6,000 workers. This reduction is one of the largest since 2023, when the company laid off 10,000 employees due to productivity issues.