Microsoft (MSFT) Xbox Division Braces for Major Layoffs—Restructuring or Retreat?
Microsoft’s Xbox division is sharpening its axe—again. Sources confirm sweeping layoffs are imminent, signaling another brutal round of cost-cutting in gaming’s most turbulent era.
Behind the curtain: The move follows lackluster Game Pass growth and a studio acquisition spree now backfiring. Wall Street’s cheering the ‘efficiency play’ while devs polish their LinkedIn profiles.
The irony? This bloodletting comes just months after MSFT touted ‘record gaming revenue.’ Nothing like a few thousand pink slips to keep those margins photogenic for earnings season.
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These upcoming job cuts follow several recent rounds of layoffs by Microsoft. In May, the company announced that it WOULD cut about 6,000 employees, roughly 3% of its global workforce, mainly from its product and engineering teams. Just a few weeks later, Microsoft laid off an additional 300 people. Furthermore, Bloomberg reported last week that Microsoft plans to cut thousands more jobs, especially in its sales division, as it reallocates resources to focus more on artificial intelligence.
If the reported Xbox layoffs happen as expected, this will be the fourth major reduction in the gaming unit’s workforce over the past year and a half. The frequent cuts suggest a larger strategic shift at Microsoft, with a greater emphasis on AI and less on certain existing operations. Although Microsoft hasn’t officially confirmed the layoffs yet, the consistent reports indicate that the company is undergoing significant internal changes to stay competitive in the tech space.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 30 Buys and five Holds assigned in the last three months. Furthermore, the average MSFT price target of $516.14 per share implies 5.2% upside potential.
