Xbox will reportedly conduct another major round of layoffs next week

It seems the cuts just keep on coming within Microsoft's gaming division. A company-wide reorganization is taking place, and that's slated to include another major round of layoffs within the Xbox team. Those cuts will be confirmed next week, according to Bloomberg. Engadget has contacted Microsoft for comment.

Microsoft confirmed last month that it would lay off about three percent of its total workforce across all teams, levels and regions in an attempt to streamline operations and flatten its management structure. That equates to around 7,000 people losing their jobs. Per Bloomberg's report, Xbox managers are anticipating "substantial cuts across the entire group." 

Microsoft cut 1,900 workers from its gaming division in January 2024, and another 650 last September. It also closed down Arkane Austin and Alpha Dog Games last year, while merging Roundhouse Studios into ZeniMax Online Studios. It shut down Tango Gameworks as well, but Krafton — the publisher of PUBG: Battlegrounds — acquired that studio last August.

For the first three months of this calendar year, Microsoft reported net revenue of $25.8 billion. It also said that its Xbox content and services revenue had increased by eight percent year-over-year.

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