Microsoft planning ‘major’ Xbox layoffs next week

Microsoft is planning to cut jobs in the company’s Xbox gaming business, as early as next week. I first reported in Notepad earlier this month that Microsoft was planning Xbox layoffs “potentially by the end of the month,” and now Bloomberg says a round of “major layoffs” is due next week.

I understand managers at Microsoft have been briefed about Xbox cuts and wider layoffs in other parts of Microsoft’s businesses. The upcoming cuts are also expected to hit Microsoft’s sales organization, just at the start of a new financial year.

Microsoft is planning to restructure parts of its Xbox business as it looks ahead to its next generation of consoles. One source tells me Microsoft is restructuring Xbox distribution across central Europe, resulting in some Xbox operations ceasing in some regions.