Despite a strong showcase during the Summer Game Fest 2025 weekend and plans to create a next-gen Xbox offering to follow up the Series S|X consoles, it’s been reported by Bloomberg that the gaming giant is planning even more job cuts.
Microsoft has been on a buying spree over the past 5 or so years, with both Activision and Bethesda getting bought out and put under the Xbox umbrella. They’ve bought more than 20 smaller studios as well to try and get more first-party titles out.
However, this has come with the concession that Xbox is focusing less on console-exclusive games. Rather, they’re trying to get their games on everything, even your phone.
Amid this change in strategy to offer Microsoft titles on competing console platforms, yet another round of layoffs have reported at the company that are targeting the gaming division.
Microsoft reportedly making job cuts at Xbox
According to Bloomberg’s Jason Schreier, Microsoft is planning a “company-wide reorganization” next week, which would be the week of June 29-July 5. The cuts are termed “substantial” in his report.
Xbox announced on June 17 that they’re planning the next generation of first-party consoles, an announcement that came a short time after Sony confirmed that they’re already focusing on getting a PlayStation 6 to market.
Additionally, they’re working on a Steam Deck competitor to get more people into the Xbox ecosystem, along with Cloud efforts that enable users to stream games directly to their devices.
So, if they’re working on a new console and technology that requires staff to get to market, where are the cuts? Allegedly, they’re in sales and marketing according to another Bloomberg report that claims thousands of jobs will be cut.
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