Microsoft reportedly laying off 650 Xbox employees

Company cuts come amid wider tech industry downturn

Microsoft will reportedly lay off 650 employees in its Xbox gaming division, according to a report by Bloomberg. The cuts come less than a year after Microsoft closed its $68.7 billion acquisition of Activision Blizzard, and amid a wider downturn in the tech industry.

Layoffs expected to impact multiple departments

The layoffs are expected to impact multiple departments within Xbox, including marketing, engineering, and publishing. The move is part of a broader cost-cutting effort at Microsoft, which has also seen the company lay off employees in other divisions, including its Surface hardware business.

Xbox revenue grows despite layoffs

Despite the layoffs, Xbox has seen revenue growth in recent quarters. The company's gaming revenue grew 13% year-over-year to $18.8 billion in the fiscal year 2023, driven by strong sales of Xbox Game Pass subscriptions and first-party games like "Halo Infinite" and "Forza Horizon 5".

Layoffs may impact Xbox Game Pass lineup

The layoffs could potentially impact the lineup of games available on Xbox Game Pass, Microsoft's subscription service that offers access to a library of over 100 games. Microsoft has invested heavily in Game Pass in recent years, and the service has been a key driver of growth for Xbox.

Microsoft remains committed to Xbox

Despite the layoffs, Microsoft remains committed to Xbox. The company has said that it will continue to invest in the platform and its gaming ecosystem. Microsoft is also expected to launch a new Xbox console in 2023.

Layoffs reflect wider tech industry downturn

The layoffs at Microsoft are part of a wider downturn in the tech industry. Other tech companies, including Amazon, Google, and Meta, have also announced layoffs in recent months. The downturn has been caused by a combination of factors, including rising inflation, interest rate hikes, and the war in Ukraine.