Microsoft Prepares Major Layoffs in Xbox Division Amid Broader Restructuring

Microsoft Corp. is planning significant workforce reductions within its Xbox gaming division, according to people familiar with the matter. The cuts FORM part of a company-wide restructuring effort, with managers reportedly notified of impending reductions across the unit. While the exact scale remains unconfirmed, sources indicate the layoffs could be substantial—potentially including complete shutdowns of some European operations.

The move follows three prior rounds of gaming division layoffs over the past twelve months. It comes alongside broader Microsoft job cuts, including 6,000 positions eliminated last May and 300 additional dismissals weeks later. The company has been reallocating resources toward artificial intelligence initiatives, with Bloomberg reporting thousands of sales division jobs at risk last week.