Cuts will simply enter Microsoft’s gaming division. A company-wide reorganization is underway, and we plan to include another major layoff within the Xbox team. These cuts will be confirmed next week Bloomberg. Engadget contacted Microsoft for comment.
Last month, Microsoft confirmed that it would lift approximately 3% of the total workforce across all teams, levels and regions to streamline operations and flatten its management structure. This amounts to around 7,000 people losing their jobs. Around BloombergThe report states that Xbox managers expect “severe group-wide cuts.”
Microsoft cut 1,900 workers from the gaming sector in January 2024, and another 650 in September last year. Last year, Arkane Austin and Alpha Dog Games were also closed, consolidating Roundhouse Studios into Zenimax Online Studios. Tango Gameworks has also been shut down, but Publisher of Clafton PUBG: Battlegrounds – We acquired the studio last August.
For the first three months of this calendar year, Microsoft reported net revenue of $25.8 billion. It also said that Xbox content and services revenues increased by 8% year-on-year.
