Microsoft Corporation is preparing significant workforce reductions within its Xbox division, according to Bloomberg citing informed sources. The restructuring will affect hundreds of employees globally as part of the company's cost optimization strategy for its gaming business.

Insiders report the layoffs will impact multiple departments including marketing, development, and administrative functions. This decision follows a strategic reprioritization after major acquisitions like Activision Blizzard, coupled with the need for operational efficiency amid slowing growth in the gaming market.

Microsoft representatives have not yet officially commented. Industry analysts suggest the company may be reallocating resources toward cloud gaming and artificial intelligence initiatives.

This marks another round of cuts for Xbox in recent years. In 2024, Microsoft eliminated approximately 10% of its gaming division staff during post-merger integration following the Activision acquisition.

Further details about the restructuring are expected within coming days. Stay tuned for updates on our website.

Source