Thu Jun 26 07:10:00 UTC 2025: **Summary:**
Microsoft is reportedly preparing for another round of layoffs, potentially targeting the Xbox division as part of a broader restructuring effort to boost profitability and invest in AI. This would be the fourth major layoff round in the past 18 months, with previous cuts affecting thousands of employees across various departments, including product, engineering, and supporting functions within Xbox. The move comes amidst significant pressure on Xbox to increase profit margins following the Activision Blizzard acquisition and aligns with a wider trend of mass layoffs in the tech industry. Meanwhile, external events such as international conflicts are also impacting workers abroad.
**News Article:**
**Microsoft Expected to Announce Fresh Layoffs, Xbox Division in the Crosshairs**
Redmond, WA – Microsoft is reportedly preparing to implement another round of job cuts, with the Xbox division potentially bearing the brunt of the impact. Sources indicate that managers within Xbox are bracing for substantial reductions in headcount as part of a company-wide restructuring initiative.
This would mark Microsoft’s fourth major layoff round in just 18 months. The tech giant has already executed three significant job cuts in 2024, leading to the closure of several subsidiaries and impacting thousands of employees across various departments.
Sources speaking to Bloomberg suggest that the pressure on Xbox to bolster its profit margins has intensified since the acquisition of Activision Blizzard in 2023, a deal valued at $69 billion. This move aligns with the company’s strategic shift toward increased investment in artificial intelligence (AI) development and infrastructure, necessitating cost-cutting measures in other areas.
Earlier reports indicated that Microsoft was planning to eliminate thousands of jobs, particularly within its sales teams, starting in early July, following the end of its fiscal year. While the latest layoffs are expected to be announced in July, the schedule may change.
In September 2024, Xbox already laid off 650 employees, primarily in corporate and supporting roles, citing post-acquisition team restructuring. Prior to that, in May, the company announced cuts impacting over 6,000 individuals, primarily in product and engineering.
The broader tech industry continues to grapple with widespread layoffs. Data from Layoffs.fyi reveals that as of June 26, 2025, 147 companies have laid off 63,443 employees. Intel, for example, reportedly plans to cut nearly 20% of its workforce, amounting to approximately 22,000 positions, as part of a strategy to streamline management and rebuild an engineering-driven culture.
In other news, the Indian embassy in Israel has issued guidance to its citizens, many of whom are workers, on how to respond to potential attacks amid escalating tensions in the region. Basav Ram, a construction worker from Haryana, described the emergency protocols, including instructions to seek shelter in bunkers or lie on the ground with arms covering their heads during an attack.
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