Microsoft has announced that it will be laying off 3% of all employees across the entire company. The layoffs also apply to its gaming/Xbox division.
Microsoft’s reasoning for laying off approximately 6,000 employees, according to a statement made to CNBC, is because they “continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace.” It’s also due to a desire to “reduce the layers of management.”
Microsoft has consistently laid off hundreds numerous times over the last few years. Previously, in 2024, it laid off 1,900 employees across its gaming division. While Activision/Blizzard took the biggest hit, the layoffs also affected employees at Xbox and ZeniMax/Bethesda. Additionally, Blizzard Entertainment president Mike Ybarra and chief design officer Allen Adham both departed from the company at that time.
Over the last year, several major companies have laid off hundreds, if not thousands, of workers from across their entire gaming division. Examples include Iron Galaxy, Bungie, Embracer Group, Behaviour Interactive, Riot Games, Sega, Sony, EA, and more. It also includes Take-Two, Square Enix, Ouka Studios, and Rocksteady.
Recently, Xbox announced that it will be raising the prices of its Series X|S consoles and accessories starting on May 1. Additionally, Xbox first-party games will cost $80 in Holiday 2025. The new prices affect devices such as the Xbox Series S 1TB ($429.99), the Xbox Series X ($599.99), and the Xbox Series X 2TB Galaxy Special Edition ($729.99). The new pricing for first-party games will likely affect titles such as Fable, Perfect Dark, Gears of War: E-Day, and more.
