microsoft layoffs

Xbox division job cuts: Thousands at Microsoft brace for yet another round of layoffs

the latest round of layoffs at Microsoft's Xbox division are indeed part of the company's broader strategy of organization-wide restructuring.

Here's a breakdown of the situation based on the provided information:

 * Anticipated Xbox Layoffs: Managers in Microsoft's Xbox division are expecting significant job cuts next week (early July 2025) as part of a company-wide restructuring.

 * Fourth Round of Layoffs: This would mark the fourth major round of layoffs for Microsoft in the past 18 months, with three significant cuts already occurring in 2024, leading to the closure of several subsidiaries.

 * Pressure on Xbox: The Xbox division has been under pressure from Microsoft executives to increase its profit margins since the acquisition of Activision Blizzard for $69 billion, which was completed on October 13, 2023.

 * Broader Restructuring and AI Investment: Microsoft is cutting thousands of jobs across various departments, including sales, as it invests billions of dollars into AI development and infrastructure like data centers. This strategic shift aims to streamline operations and reallocate resources towards AI capabilities.

 * Timing of Layoffs: The layoffs are planned for early July, strategically timed after the end of Microsoft's fiscal year on June 30.

 * Impact Beyond Sales: While earlier reports suggested a focus on sales teams, the upcoming job cuts may not solely impact them, indicating a wider reach across the organization.