Microsoft is preparing for a fresh round of job cuts, this time targeting its Xbox division, as part of an ongoing internal restructuring drive. This will mark the tech giant’s fourth wave of layoffs in just 18 months, and comes amid mounting pressure to streamline operations and boost profitability, especially after its $69 billion acquisition of Activision Blizzard in 2023.
The upcoming layoffs are expected to be significant, with managers in the Xbox unit already bracing for impact. While Microsoft hasn’t officially confirmed the move, sources suggest the cuts will take place in early July, shortly after the company closes its fiscal year. The cuts may not be limited to Xbox alone—sales and marketing teams, which had been spared during the last layoff wave in May, are now also in the spotlight.
In recent months, Microsoft has laid off thousands, including 6,000 employees in May, primarily from engineering and product roles. The broader goal is to reallocate resources toward its fast-growing AI and cloud services sectors. Heavy investments in AI infrastructure and data centers have prompted Microsoft to tighten budgets elsewhere.
Operational cost-cutting is also evident in moves like outsourcing software sales to third-party vendors for small and mid-sized businesses—a shift aimed at boosting efficiency and reducing overhead.
As of June 2024, Microsoft employed 228,000 people globally, with around 45,000 in sales and marketing. If reports prove accurate, the upcoming cuts could become one of the most significant overhauls in the company’s recent history, reshaping how Microsoft positions itself in the evolving tech landscape.
