Microsoft is planning "major" cuts across Xbox starting next week, according to a report from Bloomberg on Tuesday.
Reporter Jason Schreier notes that it's not clear exactly which teams are being affected, but that the cuts are expected to be substantial.
This will be the fourth major round of gaming-focused layoffs at Microsoft over the last two years, with around 1900 employees cut in January 2024 (mostly from Activision Blizzard King), while three ZeniMax Media studios were shuttered in May 2024, with another round of Activision-focused layoffs seeing 650 more employees cut in September 2024.
In Microsoft's most recent financial quarter ending March 31, 2025, the company saw gaming revenue up 5% year-over-year, driven by growth in Call of Duty, Minecraft, and Xbox Game Pass. Microsoft as a whole saw $70.1 billion in revenue for the quarter, up 11% year-over-year, with net income of $25.8 billion, up 18% year-over-year.
