Microsoft is planning more layoffs in its Xbox division. They may affect whole development teams

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Update #2 (June 26th)

George Broussard, one of the co-founders at 3D Realms, speculates that layoffs in Microsoft’s Xbox department might impact as many as 1000 to 2000 employees. Reports also suggest that several development studios could potentially be closed down entirely.

Update #1 (June 24th)

According to Jason Schreier’s report, it is anticipated that there will be job reductions within the Xbox team coming up next week. The managers are allegedly preparing for significant downsizing.

Original news (June 19th)

Microsoft is planning more layoffs. Bloomberg was the first website to report on the matter.

  1. We don’t yet know exactly how many people will lose their jobs. The axe is expected to affect thousands of jobs.
  2. The layoffs will mainly focus on the sales department. Microsoft intends to transfer some of the responsibilities related to contacts with companies using the corporation’s solutions to third parties.
  3. The reductions are to be officially announced at the beginning of July. The company is set to justify it with the desire to increase investment in artificial intelligence.
  4. These will be the next big layoffs at Microsoft. In May, the corporation laid off 3% of its workforce, which is over 6,000 employees. A few weeks later, they announced more, smaller layoffs, affecting 305 people.

Towards the close of the previous year, Microsoft boasted a workforce of 228,000 employees. Given that the planned cuts for this year won’t be substantial, and considering Microsoft still actively recruits for new roles, the company’s employee base is unlikely to undergo significant changes as a result.

Unfortunately, due to recent downsizing in the tech sector, those let go from Microsoft may find themselves in a challenging position. They’ll be entering a job market that is already brimming with professionals with similar skill sets who are also seeking employment.

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2025-06-27 10:31