Microsoft is reportedly planning significant layoffs in its gaming business that could come as early as next week.
Bloomberg said Microsoft plans “major” job cuts across the Xbox division. The Verge said managers at Microsoft had been briefed about the Xbox layoffs as well as wider cuts at the company, which are expected to hit sales teams in particular.
For the gaming business, The Verge said Microsoft plans to make the cuts ahead of the release of its next generation of consoles. Last week, Microsoft announced a partnership with AMD to power the next generation of Xbox, including its first-party future Xbox consoles. Microsoft has yet to say when it plans to launch the new devices.
The Verge also reported that Microsoft is restructuring its central Europe Xbox distribution, and that Xbox will cease operating in some regions.
Microsoft staff who wish to remain anonymous to protect their careers told IGN that employees are bracing themselves for layoffs, and that it feels like a matter of when, not if at the company.
And you can see why. Microsoft has made a huge number of cuts to its gaming business since acquiring Activision Blizzard for $69 billion. It laid off 1,900 staff in January 2024, then made further cuts just a few months later when it closed Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft cut a further 650 staff from its gaming business. And in May this year, Microsoft cut an eye-watering 6,000 staff, or 3% of its entire workforce.
Speaking to IGN in June 2024, Xbox boss Phil Spencer said: “I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make.”
Photographer: Victor J. Blue/Bloomberg via Getty Images.
Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].
