Microsoft’s Xbox division is set to undergo another significant round of layoffs next week. Marking the fourth major job cut in the past 18 months. These anticipated reductions are part of a broader company-wide reorganization.
Bloomberg reports that Xbox managers anticipate “substantial cuts across the entire group,” according to sources familiar with the plans. While the precise number of employees affected remains undisclosed, Bloomberg reporter Jason Schreier notes that Microsoft expects the figure to be considerable. When approached for comment on these rumoured layoffs, Microsoft has consistently declined to provide a statement.
Pressure to Boost Profit Margins
These impending layoffs follow a series of workforce reductions that occurred last year. Some of which also saw the closure of several Xbox subsidiaries. The gaming giant, responsible for both video-game hardware and software, has been under considerable pressure from Microsoft executives to improve its profit margins. This intensified scrutiny comes after the massive $69 billion acquisition of Activision Blizzard Inc. A deal that officially closed in 2023.
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