Microsoft is apparently planning its next round of layoffs – the fourth in 18 months. According to consistent media reports, the Xbox division will be hit again. The company has not yet provided exact figures.
1,900 jobs in January 2024, 6,000 in May of the following year, 650 in September – and next week will likely see the next chapter: According to Bloomberg, Microsoft is planning another wave of layoffs. It would be the fourth in a year and a half, and the Xbox division is likely to be affected again.
According to the US magazine, executives within the division are expecting cuts. This is according to several people familiar with the matter. However, they remain anonymous as this is not public information. Microsoft itself declined to comment, according to Bloomberg, and has not yet made an official statement.
“Significant cuts”?
So far, we can only speculate about the reasons behind this. One thing is clear: Microsoft is reorganizing. According to Bloomberg and The Verge, extensive restructuring is currently underway, including in the Xbox division and sales. The first managers have reportedly already been informed, and there is talk of “significant cuts.”
One possible trigger: the billion-dollar Activision-Blizzard deal. According to TheVerge, since the $68.7 billion takeover, the Xbox division has been under internal pressure to become more profitable. The magazine also reports that Microsoft wants to use the changes to strategically position itself for the next console cycle and respond to changing market dynamics.
Last year, the company also made adjustments to its Game Pass models. The bottom line: it became more expensive and more complicated. EA SPORTS FC 25 was recently added to the game catalog via EA Play. However, this requires the most expensive model, which costs around 18 euros.