Microsoft Reportedly Plans Major Layoffs at Xbox - News
by William D'Angelo , posted on 24 June 2025 / 3,469 Views
Microsoft is planning to do another round of layoffs at its Xbox division, according to Bloomberg who spoke people familiar with the plans.
This would be the fourth big layoff at Xbox in the past 18 months. There were three layoffs in 2024, including the closure of some studios. Xbox has been under pressure from Microsoft executives since the purchase of Activision Blizzard for $69 billion to increase profit margins.
Microsoft declined to comment. However, the tech giant often does major layoffs towards the end of its fiscal year, which ends on June 30.
Bloomberg also reports Microsoft plans to cut thousands of jobs next week, mainly in sales.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.
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Just in time to meet the end of the fiscal year. Sounds about corporate!
So many layoffs at Microsoft after spending $75B to buy a golden parachute for Bobby Kotick following the discovery of all the SA that was happening at Blizzard...
Shitty. The never ending story line to make shareholders happy.
This would be the "tech giant's" 4th round of layoffs in just 18 months. Gross.
Stuff like this is why the ABK deal should have never gone through.
Wouldnt be suprised if the judges at court were bribed to shut the FTC up.
This is why I think that platformholders must not be allowed to purchase platform vendors.
You now who didn't do massive layoffs even when the company was struggling with the Wii U? Nintendo. Iwata took a pay cut rather than lay everyone off.
Xbox distribution across Europe to be affected. Well, nobody here buys Xbox; so it kind of makes sense. Some regions will see Xbox ceasing all operations completely.
Courtesy of the Verge.
Pulling out of Europe. Making the next Xbox just an $800 low-end gaming PC. Publishing games to PS5. These are all the moves of a company that doesn't want to be in the business of selling consoles.
Buying ABK was a mistake
I feel like I read the same news over and over again, but they are always new ones...
Cause Xbox isn't about Xbox anymore, its about Windows
With the sales of XBS, no wonder that the layoffs mainly impact sales.
Fire everyone in charge of any decisions at Xbox and hire people who are actually interested in bring the brand back to it's glory days
Cutting off even more fat I guess, or AI is actually going to start replace jobs at MS studios.
Speaking as an investor. Take the job, get the money (invest) and experience, but don't plan a life with them. That goes for all these major companies that regularly terminate people.
Soo? This is going to happen all over the world for every sector, there is noo job that AI cant do better,faster,smarter,24/7 then humans.
In the next 10 years a huge amount of people will be jobless
If you have no games why have employees?
They are no longer making hardware in-house, this news does not surprise me. Sticking Xbox stickers on PC hardware effectively means someone else can do the minimal work on a UI.
That's not true.
well, even if they do make hardware in-house it won't be designed as a competitor to the PS6 so you don't need to have such a big team for a smaller project like the next Xbox would be
The amount of absurdities coming out of your keyboard is something...
Let him have his copium, maybe one day reality will break through.
Phil Spencer "the company is no longer trying to move players from other platforms, including PlayStation, to Xbox."
None of that means "we are no longer making hardware", spinning a quote to try align with your desperate view. Reminds me of the time you cut a quote in half by Greenberg about 4k 🤣
I didn't say they weren't making hardware, I said that even if they do it won't be a competitor to PS6 because of what Phil spencer said himself.
Down voted for an actual quote.
Xbox fans are crazy!
Yeah, they like Phil Spencer but they don't actually remember or listen to what he says.
"We are not trying to out-console Sony or Nintendo"
There confirmed like 10 times in the past months that they are working on next gen hardwares in house... Why do you keep coming to those articles and reply that kind of stuff?
This is just to please shareholders, nothing else there. Happens every year and will happen nexst year..
Incoming "Its GamePass and the Series S, fault"
Okay, where does the fault lay then?
fault? Have you worked in the real world before? Layoffs are standard across majority of businesses and corporations. Also 2 key factors, 1 EOFY, 2 War
So they are just random layoffs?
So you are saying they are nothing to do with the fact Xbox is selling like soiled underwear, and actually Microsoft is just an awful company who just do FOUR rounds of layoffs because of utter greed?
They have layoffs every year, and so does Sony who are the market leader and every other company. Its called reality. Lay offs happen every day.
Why have Microsoft had 4x the layoffs compared to anyone else?
1) They are all about money
2) They have more staff then most, so more to let go. They also hire more overall staff.
