Xbox is facing mounting scrutiny after reports claimed the division is preparing the 'largest single layoff event in gaming history,' with Microsoft allegedly set to finalise decisions on 30 June and begin job cuts from 7 July across its Xbox business and first‑party studios.
The rumours surfaced as the video game industry continues to reel from repeated rounds of redundancies since 2023, despite booming player numbers and record engagement. Microsoft has not announced any fresh cuts publicly, but insiders quoted in multiple reports allege that the coming Xbox restructuring will go beyond previous waves and could include the closure or spin‑off of several well‑known studios.
