The gaming industry doesn’t really want to calm down: heavyweight Microsoft has apparently started the next wave of layoffs, which also affects the Xbox division.
It wasn’t until January 2024 that Microsoft caused a stir when the company unceremoniously laid off around 1,900 Xbox employees in order to make cost-cutting measures and adapt to the changing circumstances in the video game industry. Several other companies also made layoffs in recent days, but even a few months later, the industry is still far from calming down this summer.
The next wave of layoffs at Microsoft is said to have started, although it is still unclear how extensive this will be. According to the usually well-informed Tom Warren of The Verge, the relevant employees will be informed of their termination in the current first week of July.
This seems to be the case, as the first Xbox employees have announced via social media that they have lost their positions on the Xbox team after it was eliminated. This includes @Jessabirdy, for example, whose position was completely eliminated. Senior Product Manager Angela Viness also has to look for a new job, as does Technical Program Manager Cory Ebert.
The timing of the new layoffs is probably no coincidence: Microsoft’s new fiscal year started on July 1st and will end on June 30th, 2025. The job cuts could therefore be related to budget adjustments for this fiscal year. However, it is considered unlikely that there will be further complete studio closures in this context, as happened a few weeks ago in the Bethesda cosmos.