Microsoft to slash more Xbox jobs as part of wider workforce reduction
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Microsoft is planning another significant round of layoffs within its Xbox division as part of a broader company-wide restructuring.
As reported by Bloomberg, sources familiar with the matter say managers are bracing for deep cuts across the entire Xbox group.
This marks the fourth major layoff at Xbox in the past 18 months, following multiple cuts and studio closures last year.
The division has faced mounting pressure to improve profit margins since Microsoft acquired Activision Blizzard for $69 billion in 2023.
In May, the Windows company laid off 3% of its global workforce, affecting all teams, levels, and regions. With a total headcount of 228,000 as of June 2024, the cut impacted around 7,000 employees.
Staying cautious
Elsewhere, Microsoft continues to stall the launch of its Xbox mobile game store, citing Apple’s restrictive App Store policies as the main obstacle.
In a recent amicus brief filed in support of Epic Games’ legal battle against Apple, Microsoft blamed the delay on Apple’s anti-steering rules, which have historically blocked links to alternative payment methods.
While a US judge recently ruled against these practices – forcing Apple to allow such linkouts and paving the way for Fortnite’s return to the App Store – Microsoft remains cautious.
The company expressed concern that Apple could successfully appeal the injunction, potentially reinstating the restrictions and jeopardising the viability of a competing Xbox store on iOS.
