UPDATE 25/6/25: In addition to Bloomberg's report,
The Verge has also said Microsoft is set to restructure Xbox distribution across central Europe. According to one source, this will result in "some Xbox operations ceasing in some regions".
ORIGINAL 24/6/25: "Major job cuts" are set for Xbox as part of a company-wide reorganisation.
That's according to a
Bloomberg report, which states these cuts will begin next week. While Bloomberg reporter Jason Schreier said it is currently unclear how many people will be affected by the alleged job cuts, "it's expected to be big".
Bloomberg states Xbox has been facing pressure from Microsoft execs "to boost profit margins" since its acquisition of Activision Blizzard.
Microsoft sealed the deal to acquire Activision Blizzard all the way back in 2023 for $68.7bn, making history as the biggest company buyout in the video games industry to date.