Microsoft Layoffs 2025 Thousands Affected in Xbox and Global Sales Teams for the 4th Time in 18 Months
Microsoft is once again entering layoff mode, with thousands of job cuts expected as part of a major corporate restructuring. This marks the fourth round of Microsoft layoffs in just 18 months, with the Xbox division and Global Sales team facing the most significant impact.
Microsoft Layoffs 2025: What We Know So Far
According to a Bloomberg report, the latest round of job cuts will affect thousands of employees, coming just days before Microsoft’s fiscal year ends. Internal sources describe this as a “substantial” reduction in workforce.
Divisions affected: Xbox, Global Sales & Marketing
Total layoffs: Thousands (exact number pending confirmation)
Timing: June 2025, ahead of fiscal year closure
Goal: Streamline operations, reduce management layers, cut costs
Xbox Hit Hard Again After Activision Blizzard Acquisition
Following Microsoft’s massive $69 billion acquisition of Activision Blizzard in 2023, expectations for Xbox performance have intensified. Despite high hopes, the division has faced repeated cuts:
Xbox Layoff Timeline:
January 2024: 1,900 jobs lost in gaming division
September 2024: 650 more laid off
Studios closed:
Tango Gameworks (Hi-Fi Rush)
Arkane Austin (Redfall)
Xbox is currently working on a next-gen console with AMD, and restructuring efforts are reportedly aimed at preparing for that launch.
Global Sales and Marketing Division Sees Heavy Reductions
Microsoft’s Sales and Marketing division, with over 45,000 employees, is also undergoing major downsizing. Over the past month alone, 6,300 jobs have been eliminated in two phases.
According to The Verge, Microsoft is also restructuring Xbox distribution in Central Europe, which may affect regional operations and teams.
Total Impact on Microsoft Workforce in 2025
Earlier this year, Microsoft confirmed plans to cut around 3% of its global workforce, which stands at 228,000 employees. The latest round of layoffs may push those numbers even higher.
Reasons for Layoffs:
Corporate restructuring
Flattening management structure
Reducing overhead costs
Refocusing resources on high-growth areas like AI and hardware
Why This Matters
This is the fourth major layoff at Microsoft in 1.5 years—highlighting broader trends in the tech industry as companies adjust to post-pandemic realities, cost pressures, and shifts toward AI-driven strategies.
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