Xbox announces new round of layoffs, now 650 employees

This is not the first case of layoffs in Microsoft’s gaming division. Earlier this year, the company laid off approximately 1,900 employees across several areas, including game studios and Activision Blizzard itself.

These moves were part of a broader strategy by Microsoft to streamline its operations after making massive acquisitions and facing increasing competition in the gaming sector.

It’s notable that despite being one of the largest companies in the world, Microsoft has had to make several staff cuts in recent years, a pattern that has affected both its Xbox division and other areas such as its Azure cloud services unit and its HoloLens mixed reality project.

Mass layoffs in the tech industry

In 2024, the tech industry has faced a significant wave of layoffs. According to a Crunchbase analysis, more than 200,000 tech employees have lost their jobs this year, reflecting a trend that has continued since 2023, when around 191,000 workers were laid off.