Microsoft is preparing for a new round of layoffs in many departments, especially its gaming division Xbox. According to the latest information, the layoffs will begin next week and will cover sales units and some Xbox operations in Europe.

Microsoft is making a major layoff at Xbox

A complete cessation of operations in some of the company’s sales and distribution networks in Europe is on the agenda. It is stated that the Xbox distribution network will be reshaped in some regions centered in Central Europe. Information about the cuts was conveyed to managers within the company.

With the entry of a new year in Microsoft’s financial calendar, significant reductions are also expected in sales organizations. This development constitutes a new phase of the layoff process that the company has been continuing since the beginning of 2024.

In January 2024, a total of 1,900 employees from the Activision Blizzard and Xbox teams were laid off. In May 2024, Tango Gameworks and Arkane Austin studios were closed, and this decision also affected game projects such as Hi-Fi Rush and Redfall. In September of the same year, 650 more Xbox employees were laid off.

Finally, 6,000 more employees were laid off in May 2025, and another downsizing affecting more than 300 employees occurred earlier this month. Last week, a new claim was made that thousands more employees will be laid off.

Microsoft is restructuring its Xbox unit in line with its new console plans. The decisions made within this scope will cover all departments. So what do you think about this issue? You can share your views with us in the comments section below.