According to updated information, new cuts will be confirmed next week.
Last month, Microsoft confirmed that it will cut about 3% of its global workforce to streamline operations and reduce the management layer. This figure equates to about 7,000 unemployed personnel. Xbox managers are bracing for significant cuts across the department.
In January 2024, Microsoft lay off 1,900 employees in the gaming department and another 650 in September.
However, in the first quarter of 2025, Microsoft still reported net revenue of 25.8 billion USD. The Xbox content and service segment alone grew by 8% year-on-year.
The consecutive personnel cuts show that the company is still restructuring strongly to optimize operating costs and consolidate departments after the merger.
This is a signal that the gaming industry is entering a period of tightening resources, even for giants like Microsoft.
