Microsoft may be planning another round of job cuts next week: This unit faces layoffs

Microsoft is reportedly going to layoff employees within its Xbox division next week. According to a report by Bloomberg, these job cuts are a part of a broader company-wide reorganisation. This move marks the fourth major layoff for Xbox in the past 18 months, following three significant reductions last year and the closure of several subsidiary studios.

Citing individuals familiar with the plans who requested anonymity, the report noted that managers within the Xbox group are anticipating considerable cuts across the entire division.

Why Microsoft is cutting jobs in Xbox division
The Xbox division, responsible for both video-game hardware and software, has been under increasing pressure from Microsoft executives to boost profit margins, the report noted. This heightened scrutiny comes particularly after the company's $69 billion acquisition of Activision Blizzard , a deal that was finalised in 2023.

This news follows earlier reports from Bloomberg that Microsoft intends to cut thousands of jobs next week, with a primary focus on its sales departments. The tech giant frequently implements significant organisational changes as its fiscal year draws to a close on June 30.

Largest ever job cuts at Microsoft continue
Recently, Microsoft cut more than 300 additional jobs, deepening its ongoing workforce reductions just weeks after executing its largest round of layoffs in years. The new layoffs followed the elimination of 6,000 roles last month, bringing the total number of job cuts to more than 6,300 in recent weeks. This represents Microsoft's second-largest workforce reduction since 2023, when the company laid off 10,000 employees.

While Microsoft has not specified which departments or roles were affected in this round, similar layoffs in the past have impacted software engineers and project managers.

At an internal town hall following the previous round of cuts, CEO Satya Nadella described the layoffs as a “realignment” rather than performance-based decisions.

“This was not about people failing. It was about repositioning for what comes next,” Nadella said.