Xbox Company Microsoft Lays Off 3% of Workforce

Tariff uncertainty and prolonged inflation post-COVID are leaving many executives scrambling for solutions to appease shareholders despite continued record profits. There are a lot of things going right for Xbox right now, including finding newfound success selling its games on PlayStation 5. Of course, there’s some not-so-great news, too, including an increase in pricing across all Xbox consoles beyond launch pricing. Now, Microsoft is shifting its approach to management positions in a layoff so sizable that 3% of its total workforce will be affected.

As first reported by CNBC, Microsoft will eliminate 6,000 management-layer positions, totaling around 3% of its total workforce. The Xbox manufacturer last eliminated a significant number of positions in 2023 when it reduced 10,000 roles. Instead of layoffs tied to performance, Microsoft is restructuring responsibility roles to shore up how many individuals are reporting to various management positions. This decision will not target one section of its many arms; All of Xbox’s projects could likely be impacted by the action.

It’s hard to say how Xbox’s strategy of almost every device imaginable playing Xbox games via Cloud or Game Pass might factor into its future successes. The rumored Xbox handheld is in development, and many Xbox Game Pass titles, such as Clair Obscur: Expedition 33 and Blue Prince, continue to help push subscriptions alongside first-party projects like Doom: The Dark Ages. What’s likely is more uncertainty in the games industry. Microsoft’s many corporate interests both strengthen its appetite for rough waters in one pond as well as open it up to the need for major adjustments when the entirety of its tech sector is threatened.

Let us know in the comments how you see Xbox faring in the near future as well as its long-term goal to become a software-first company that sells hardware built for a wider audience.