“Major job cuts” are set for Xbox as part of a company-wide reorganisation.
That’s according to a Bloomberg report, which states these cuts will begin next week. While Bloomberg reporter Jason Schreier said it is currently unclear how many people will be affected by the alleged job cuts, “it’s expected to be big”.
According to the report, sources familiar with the company’s plans said managers within Xbox are expecting “substantial cuts across the entire group”.
This would not be the first time Microsoft and Xbox have made headlines for layoffs in the last 18 months. Back in January 2024, 1900 people from across Microsoft’s video game teams were laid off. A further 650 staff were then let go that September.
Breaking: Microsoft is planning major job cuts at Xbox that will begin next week, sources tell Bloomberg News. Not yet clear how many people, but it’s expected to be big. This will be the fourth mass layoff at Xbox in the last 18 months. www.bloomberg.com/news/article…
[image or embed]
— Jason Schreier (@jasonschreier.bsky.social) June 24, 2025 at 2:46 PM
Manage cookie settings
Microsoft additionally laid off a “small” number of employees back in January of this year, while in May it was reported the company was laying off three percent of its workforce across the business.
Bloomberg states Xbox has been facing pressure from Microsoft execs “to boost profit margins” since its acquisition of Activision Blizzard. Microsoft sealed the deal to acquire Activision Blizzard all the way back in 2023 for $68.7bn, making history as the biggest company buyout in the video games industry to date.
Eurogamer has contacted Microsoft for further comment on today’s reported layoffs and will update as and when we know more.
