Report: Microsoft is planning another round of major Xbox layoffs

Microsoft is preparing to make even more Xbox workers redundant as part of a company-wide reorganization that will reportedly take place next week.

Bloomberg reports that managers within Xbox are expecting "substantial cuts" to be made across the division. Microsoft declined to comment when approached by the publication.

It's currently unclear how many people stand to be impacted by the purported cuts—or which studios and departments will be impacted. If the latest rumblings prove true, it would mark the fourth major round of layoffs within Xbox in the space of 18 months.

The U.S. tech company kicked off 2024 by laying off 1,900 people across its video game business following its colossal $68.7 billion merger with Activision Blizzard.

It followed those cuts by shuttering key studios such as Arkane Austin, Alpha Dog Games, and Tango Gameworks, the latter of which was eventually pulled back from the brink after being purchased by PUBG maker Krafton.

In May 2024, Xbox president Sarah Bond said those redundancies would ensure Xbox remained "healthy for the long term." It would be reasonable to suggest she spoke too soon.

Microsoft laid off another 650 video game workers in September 2024. Those cuts reportedly impacted staff across "corporate and supporting functions."

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In an email sent to employees by Xbox boss Phil Spencer (obtained by Game File), workers were told the layoffs would help Microsoft deliver "long-term success."

Microsoft subsequently barrelled into 2025 by making another "small" round of layoffs in January, targeting what it called "underperforming" employees.

Game Developer has reached out to Microsoft for comment on the latest layoff reports.