Xbox Job Cuts: Microsoft is said to be making plans for another round of layoffs in its Xbox unit, set to occur next week as part of a wider company-wide restructuring. The cuts will hit a significant number of Xbox staff, the fourth significant cut within the gaming division in 18 months, according to Bloomberg.

The move comes amid increasing pressure on the Xbox team to increase profitability, particularly following Microsoft's acquisition of Activision Blizzard for $69 billion in 2023. Xbox, which produces both gaming software and hardware, has experienced major changes in strategy as Microsoft reduces its focus on cost-cutting and more expenditure on artificial intelligence.

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Bloomberg added that thousands of jobs may be eliminated company-wide next week, the majority of which are from the sales staff. These are among Microsoft's larger realignment efforts, which normally happen around the end of its fiscal year on June 30.

If true, these layoffs come after a series of recent rounds of layoffs. In May, Microsoft dismissed 6,000 workers, followed by another 300 this month. Back in January 2024, some 1,900 positions were removed across Activision Blizzard and Xbox. The company shut down a number of game studios in May, among them Tango Gameworks—most famous for Hi-Fi Rush—and Arkane Austin, the developers behind Redfall. A further 650 jobs were chopped from the Xbox division in September 2024, and some 1,000 workers from the HoloLens and Azure cloud teams lost their jobs in June 2024.

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As Microsoft bets big on AI and reshapes its business to accommodate new technologies and infrastructure, such broad job reductions highlight the challenging balancing act tech behemoths must perform—investing in the future while cutting the present. For Xbox, it's a reminder of the way business realities can redefine even the most innovative corners of the market.