Xbox division faces major job cuts

Business Jun 27, 2025

Microsoft is gearing up for another round of layoffs, this time in its Xbox division.
This marks the fourth wave of job cuts in just a year and a half, following big changes after Microsoft's $69 billion Activision Blizzard buyout.
Previous cuts even led to some Xbox subsidiaries shutting down.

AI and tech infrastructure are driving these layoffs

These layoffs are part of Microsoft's bigger push toward artificial intelligence and new tech infrastructure, which has already impacted thousands of roles—especially in sales.
The trend isn't just at Microsoft; across the tech world, companies like Intel are also cutting jobs as they realign priorities and double down on engineering and AI.