Microsoft reportedly plans to cut thousands of jobs in Xbox & gaming

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Although Microsoft put on a impressive display during the Summer Game Fest 2025 weekend, and intends to launch a new generation Xbox console as a successor to the Series S|X models, recent reports from Bloomberg suggest further reductions in workforce at the gaming giant.

Over the last five years or so, Microsoft has engaged in a series of acquisitions, most notably adding Activision and Bethesda to its Xbox family. Additionally, over twenty small game development studios have been purchased by Microsoft with the aim of expanding their library of exclusive games.

Instead, Xbox is shifting its strategy towards making their games available across multiple platforms, including mobile devices.

In response to a shift in strategy to make Microsoft games available on rival console systems, there have been more job cuts announced within the company, particularly affecting the gaming sector.

Microsoft reportedly making job cuts at Xbox

Next week, I’m bracing myself for some major changes at our gaming company, as per the word on the street from Jason Schreier over at Bloomberg. He’s hinting at a significant shake-up, happening between June 29th and July 5th. So, fingers crossed and controllers locked tight until we know more!

On June 17th, Microsoft revealed their intentions to develop the upcoming lineup of in-house gaming consoles. This news followed closely after Sony’s disclosure that they are already working towards bringing a PlayStation 6 to consumers.

Furthermore, they are developing a device similar to the Steam Deck to attract more individuals into the Xbox community, while also focusing on cloud services that allow users to stream games straight to their gadgets.

If they’re developing a fresh console with advanced tech needing swift market release, one might wonder where the potential layoffs could occur. Reportedly, these redundancies are expected in sales and marketing departments, as per another Bloomberg report suggesting a significant workforce reduction involving thousands of employees.

As a dedicated gamer, I’ve been following Xbox closely and I can’t help but feel a sense of unease. Despite their impressive lineup of first-party games set to release soon and the fantastic selection of critically acclaimed titles available on Game Pass this year, it’s the fourth time in recent years that Microsoft has had to undergo layoffs. It’s a reminder that even the most exciting gaming landscape can have its challenges.

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2025-06-24 18:19