June 25, 2025 – According to a recent report from Bloomberg, Microsoft is gearing up for a significant round of layoffs within its Xbox gaming division as early as next week, with the potential to impact the entire team. The tech giant has chosen to remain tight-lipped regarding these planned layoffs, declining to offer any comments.
Bloomberg highlights that this would mark the fourth major staff restructuring within the Xbox division over the past 18 months. Prior to this, the division had already undergone three rounds of layoffs in the previous year, along with the closure of several subsidiary companies.
The report further reveals that since Microsoft’s acquisition of Activision Blizzard for a staggering $69 billion in 2023, the company’s management has been applying relentless pressure on the Xbox hardware and software divisions to enhance profit margins.
Interestingly, these layoffs come at a time when Microsoft is approaching the end of its fiscal year, which concludes on June 30. It’s a period when the company typically makes organizational adjustments. Bloomberg had also previously reported a few days ago that Microsoft was planning to cut thousands of jobs, primarily within its sales department, in the upcoming week.
