Microsoft's gaming division is poised for substantial layoffs, continuing a trend that has seen multiple rounds in the past year and a half. With changes in strategy focusing more on Windows gaming and PlayStation exclusives, the company is reportedly looking to cut costs across Xbox. Phil Spencer, CEO of Microsoft Gaming, emphasizes the importance of maintaining profitability amidst these cuts, which began with significant layoffs in early 2024. This evolution follows a massive acquisition spree, raising concerns regarding revenue expectations and operational efficiency within the Xbox portfolio.
Our jobs inside the company is to run a good business. We're accountable to Microsoft for running a good business, a healthy business that continues to grow at both top line and bottom line.
Microsoft Gaming is undergoing substantial cuts across Xbox, marking the fourth round of layoffs in 18 months amid a shift towards investing in Windows gaming.
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