Microsoft Set for Major Layoffs at Xbox, Sales Teams Ahead of Fiscal Year-End

Hans India

5 days ago

In what could mark its fourth major layoff in just 18 months, Microsoft is reportedly preparing to cut more jobs—this time focusing on its Xbox division and global sales operations. The move comes as the tech giant looks to streamline operations ahead of the close of its financial year on June 30.
According to a Bloomberg report citing sources familiar with the matter, the layoffs are part of a broader company-wide restructuring. Several teams within the Xbox group are expected to be affected, although the exact number of job losses remains undisclosed. The layoffs are anticipated to be substantial and are likely to be officially announced early next week.
The Xbox division, responsible for gaming consoles, studios, and services like Game Pass, has already undergone multiple rounds of job cuts over the past year. In 2023, Microsoft closed some of its gaming subsidiaries and reshuffled key roles within the division. Now, with its $69 billion acquisition of Activision Blizzard completed, the company appears to be reevaluating its strategy and cost structure for the gaming business.
But the job cuts may not be limited to gaming. Earlier this month, Bloomberg reported that Microsoft was planning to eliminate thousands of positions across various departments, with global sales teams among those possibly facing reductions. In May, the company reportedly let go of about 6,000 employees, mostly in engineering and product development roles. At that time, sales and marketing staff were largely spared, but this new round of layoffs could change that.
One major driver behind the restructuring is Microsoft's ongoing push into artificial intelligence and cloud infrastructure. The company has invested billions into expanding data centers and developing AI-driven services. As part of this shift, Microsoft has been reallocating resources, including outsourcing certain functions. In April, employees were informed that software sales for small and medium-sized businesses would be handled by third-party firms instead of in-house teams.
Microsoft had 228,000 employees worldwide as of June 2024, with about 45,000 in sales and marketing. With multiple teams involved and thousands of roles potentially impacted, the forthcoming layoff is expected to be one of the company's most significant internal overhauls in recent memory.
While the company hasn't officially confirmed the layoffs, it has maintained that workforce reviews are a routine part of aligning business goals. Microsoft has also emphasized in recent investor and internal communications a renewed focus on efficiency and curbing non-essential expenses.