Microsoft layoffs: Xbox division likely to face largscale jobcuts

Microsoft is reportedly mulling large-scale layoffs in its Xbox division next week. The move is part of an internal shake-up across departments in the tech giant. A Bloomberg report said that senior officials of the Xbox division, aware of the matter, have been informed by the top authorities of the company to expect large-scale layoffs in the department. However, Microsoft is yet to issue an official statement on the matter.

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Fourth layoff in 18 months

According to media reports, the impending job cuts would be the fourth major round of layoffs in the Xbox division over the last 18 months. The division, which works in the fields of gaming software and hardware, has been under the scanner of Microsoft management ever since the tech giant took over Activision Blizzard Inc. in 2023 for $69 billion. According to an Economic Times report, Microsoft’s sales and marketing team, which employs around 45,000 staff, will see the most number of job cuts.

Apart from its earlier layoffs, Microsoft had earlier shut down several of its gaming subsidiaries in a bid to boost profitability by streamlining operations.

According to a report in The Mint, even though Bloomberg had earlier reported that Microsoft was considering to layoff thousands of employees in its sales team across the globe, the impending job cuts appear to be a part of its company-wide restructuring effort timed with the end of the firm’s fiscal year on June 30.

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History of organisational restructuring

The tech giant has a history of conducting major organisational restructuring as it nears its fiscal close. The Mint report says that the restructuring ensures that the company enters a new financial year with a streamlined workforce and fresh strategic focus.

According to media reports the Microsoft is yet to officially announce the layoffs within Xbox, which has earlier faced several rounds of job cuts.

The development comes after Microsoft resorted to large-scale layoffs, which affected about 6,000 employees, amounting to 3 per cent of its global workforce in May. This primarily affected employees working in the product development and engineering departments. However, departments dealing with customers and sales mostly remained unaffected.