Microsoft Layoffs 2025: Tech Giant Likely to Fire Employees Next Week in Xbox Division
The global tech industry is witnessing another wave of layoffs, with Microsoft reportedly preparing for another major workforce reduction.
The global tech industry is witnessing another wave of layoffs, with Microsoft reportedly preparing for another major workforce reduction. Amid rapid advancements in Artificial Intelligence (AI) and automation, tech giants are restructuring to maintain profitability and streamline operations. Microsoft is the latest to join the trend, after already laying off over 6,000 employees earlier this year.
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Xbox Division Likely to See Job Cuts
According to a report by Bloomberg, Microsoft’s upcoming layoffs will primarily impact its Xbox division. The gaming arm, which oversees Xbox consoles, game development studios, and digital services like Game Pass, is expected to bear the brunt of the restructuring effort. The move comes as part of broader cost-cutting initiatives following the company’s $69 billion acquisition of Activision Blizzard.
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Strategic Shift Towards AI and Cloud
Microsoft is shifting its focus toward AI technologies, cloud infrastructure, and enterprise solutions, deprioritizing areas like gaming and physical software sales. The company is also outsourcing software sales responsibilities to third-party vendors, reducing the need for in-house staff in certain departments.
Impact on Marketing and Sales Teams
Industry experts predict that the marketing and sales departments—which currently employ over 45,000 people—could also be affected in the next phase of layoffs. This would mark Microsoft’s fourth major layoff in just 18 months.
Previous Layoffs Focused on Engineering Teams
In May 2024, Microsoft cut over 6,000 jobs, primarily from its engineering and product teams. This week’s layoffs are expected to be announced before the end of the fiscal year on June 30, aligning with the company’s internal reorganization strategy.
Current Workforce Statistics
As of June 2024, Microsoft employs approximately 228,000 people globally. The upcoming layoffs are part of a broader realignment aimed at enhancing efficiency in the face of changing industry demands.
