According to Bloomberg, Microsoft plans to lay off its Xbox gaming division again, and it will be a massive layoff, which may be carried out as early as next week.Foreign media The Verge said that Microsoft management has heard briefings on Xbox layoffs and the company's larger layoffs, and the layoffs are expected to particularly affect the sales team.
The Verge also reported that Microsoft is reorganizing its Xbox distribution network in Central Europe, and Xbox will cease operations in certain regions.A Microsoft employee who declined to be named to protect his occupational safety told IGN that employees are preparing for layoffs, and that in the company's view, it's only a matter of time before the layoffs, not whether or not it will happen.
Grummz pointed out that in fact, this is the fourth round of large-scale layoffs on the Xbox business in the past 18 months, which has proved that Xbox's transformation of Game Pass business is not going well, and Microsoft's attempt to become the gaming industry's Netflix will not work at all.
Since its $69 billion acquisition of Activision Blizzard, Microsoft has made several massive layoffs on its gaming business:
In January 2024, the company laid off 1,900 employees
A few months later, the company further cuts, closing down Arkane Austin, a developer of Red Shark Island and Tango Gameworks
In September 2024, Microsoft laid off 650 employees from its gaming business
In May this year, Microsoft laid off 6,000 employees, accounting for 3% of its total employees.