Microsoft's Xbox division is rumored to have massive layoffs again, and Activision continues to reorganize after acquisition

Microsoft plans to implement a new round of large-scale layoffs in the Xbox gaming department next week, which may cover the entire team. This is the fourth major personnel adjustment in the department in the past 18 months. A Microsoft spokesperson currently declined to comment.

The reorganization plan takes place on the eve of the end of Microsoft's 2024 fiscal year (ending June 30), which is in line with the company's practice of optimizing the structure at the fiscal year node. It is worth noting that Bloomberg has previously disclosed that Microsoft will cut thousands of jobs next week, mainly in the global sales department, indicating that this wave of layoffs will span multiple business segments.

Since the acquisition of Activision Blizzard for $69 billion (about 495.6 billion yuan) in 2023, Microsoft management has continued to put profit pressure on the Xbox hardware and software business. Last year, the department has undergone three rounds of layoffs and closed several subsidiaries, showing the continued shock in the acquisition and integration process. This new round of layoffs is seen as a key move for Microsoft to further optimize the cost structure of its gaming business.

As industry growth slows, Microsoft is responding to market changes through structural adjustments, but the long-term impact of frequent layoffs on the Xbox ecosystem remains to be seen.