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Xbox is Restructuring Again With Mass Layoffs and Operational Shutdown Incoming

Microsoft plans to announce another wave of “massive” layoffs next week according to a new report. Bloomberg says that the company will be undertaking another restructuring and, as a result, the Xbox division will be hit the hardest.

One major focus for this restructure is its Europe division. The report claims that Microsoft will launch wider layoffs in the region and target its sales organisation. Sources claim that the company is even planning to pull the brakes on Xbox operations in Europe, ceasing sales and distribution in certain areas.

The layoffs will be announced and put in place as Microsoft kicks off its latest financial year. While other divisions will be affected by the mass layoffs, the report claims the Xbox department will be hit the hardest.

This comes after Microsoft recently purchased Activision Blizzard, raised the price of Xbox Game Pass, and saw price hikes across its consoles and accessories. The company also recently announced the ROG Xbox Ally, a gaming handheld in partnership with ASUS. Xbox also confirmed the next-gen console is in development with an entirely new approach to unifying all gaming storefronts.

The layoffs will mark the latest massive wave of retrenchments to hit Microsoft. Earlier this year, the company let go of over 6,000 staff. There was also a smaller wave of more than 300 people in early June. In January 2024, 1,900 staff were let go as a result of the Activision/Blizzard merger. The company also closed down multiple studios, including Tango Gameworks and Arkane Austin. Not to mention the 650 Xbox staff in September last year and 1,000 workers in June last year who were part of the HoloLens team.

Source: Bloomberg

Marco is the owner and founder of GLITCHED. South Africa’s largest gaming, tech and pop culture website. GLITCHED quickly established itself with tech and gaming enthusiasts with on-point opinions, quick coverage of breaking events and unbiased reviews across its website, social platforms, and YouTube channel.

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