Microsoft is reportedly planning a “major” round of layoffs at Xbox next week.
That comes from Bloomberg, which says managers within Xbox are anticipating substantial cuts. Microsoft did not comment. The move will be part of a company-wide reorganisation, according to the report.
This would follow a recent round of Microsoft layoffs in May 2025, where 3% of the company’s headcount was targeted. A smaller round of layoffs came before that in January 2025.
Back in January 2024, the gaming division specifically axed 1,900 roles. In September 2024, it then cut another 650 staff from games.
In May 2024, it was revealed that four studios under subsidiary Bethesda were to be closed, with some staff “realigned” to other teams. One of those studios – Tango Gameworks – was acquired by Krafton and ultimately spared closure.
During its recent Q3 2025 results, Microsoft shared that its gaming segment increased revenue 5% year-on-year.
GamesIndustry.biz has also reached out to Xbox for comment on the claims in the report, and we’ll update this story if any clarification is shared by the company.
