New Delhi, June 25: Microsoft is reportedly preparing for another round of job cuts as part of an internal reorganisation. Reports indicate that the upcoming Microsoft layoffs could impact its Xbox gaming division.
Microsoft laid off over 6,000 employees this year. Recently, Microsoft also laid off around 350 employees in Redmond city, Washington. The company has yet to make an announcement, but the upcoming layoffs are expected to begin next week.
The job cuts are said to be a measure taken to streamline its operations. As per a report of Bloomberg, Microsoft is planning to carry out another round of job cuts in its Xbox gaming division next week. The layoffs at Microsoft are reportedly an effort to reorganise the company. Managers in the Xbox team are anticipating that there might be considerable restructuring in staff within the entire division.
Xbox is a video gaming division that includes video game consoles and games. Xbox is managed by Microsoft Gaming, which is a part of Microsoft Corporation. As per reports, it is said to be the fourth significant round of layoffs at Xbox in the last 18 months. It follows three major job cuts that occurred last year, along with the closure of several subsidiary companies.
Xbox, which is responsible for creating video game hardware and software, has been reportedly facing pressure from Microsoft executives to improve its profit margins. The push for increased profitability comes following Microsoft’s acquisition of Activision Blizzard Inc. for USD 69 billion, a deal that was finalised in 2023.
The update also follows reports from a few days ago, which suggested that Microsoft is intending to lay off thousands of jobs in July this year. The company is said to be planning layoffs in its sales department. As per a report by Bloomberg, Microsoft may lay off thousands of employees in its sales department to streamline its workforce amid investments in AI.