will lay off thousands of employees across Xbox and other departments, a company representative confirmed to CNBC. The company’s restructuring will affect all levels and teams worldwide.
Microsoft Posted Strong Financial Results Despite the Layoffs
The company behind Windows, 
Xbox
, Bethesda
and Activision Blizzard had around 228,000 employees as of the end of June 2024, so the move will impact approximately 6,000 workers.
In its latest financial report, Microsoft announced better-than-expected results: $25.8 billion in net income.
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Xbox Game Pass Adding Two More Games To Its Lineup
Xbox Game Pass continues its hot streak by adding these two titles to its library.
Regarding video games, Microsoft Gaming saw a 5% increase in revenue thanks to an 8% rise in earnings from game sales and services (such as Game Pass), although revenue from Xbox console and accessory sales fell by 6%.
A Microsoft spokesperson explained the move in statements published by CNBC:
“We continue to implement necessary organizational changes to better position the company for success in a dynamic market.”
Previous Waves of Microsoft Layoffs
Microsoft laid off 4.5% of its workforce in January 2023affecting around 10,000 employees, including workers at Xbox Game Studios (such as 343 Industries, the developers of Halo) and Bethesda Softworks.
A year later, following the $69 billion acquisition of Activision Blizzard and King,
Microsoft Gaming announced 1,900 layoffs at Xbox Game Studios, Bethesda Softworks, and the newly acquired studios.
In May 2024, Bethesda shut down Tango Gameworks ( Hi-fi rush
), Arkane Austin (Prey), and Alpha Dog Studios.
This past September,
Microsoft Gaming laid off another 650 workers
. CEO Phil Spencer stated that “no game, device, or experience” would be canceled as a result of those cuts. Finally, in January 2025, Microsoft announced that it would let go of an unspecified small number of employees.
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Microsoft Announces a New Round of Layoffs
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Video Game Industry Layoffs
So far in 2025, the video game industry has cut approximately 2,200 jobs, excluding Microsoft’s most recent layoffs.
This follows a trend of significant industry downsizing in previous years:
- 2024: 14,600 layoffs
- 2023: 10,500 layoffs
- 2022: 8,500 layoffs
-
Total layoffs in the sector since 2022 now exceed 35,000 workers.
The data comes from the Game Industry Layoffs database, tracking workforce reductions across the gaming sector.
Xbox Game Studios
- Date Founded
-
March 1, 2000
- CEO
-
Phil Spencer
- Parent Company
-
Microsoft, Microsoft Game Studios
- Accessories
-
Xbox Elite Controller Series 2, Xbox Series S Paper, Xbox Adaptive Controller
